This Paper studies a consumption and portfolio choice problem of a long-lived investor who derives pleasure not only … consumption has a tremendous effect on portfolio choice. In particular, mean allocation to stocks is much lower under the proposed …

This paper analyzes the asset pricing implications of commonly-used portfolio management contracts linking the … compensation of fund managers to the excess return of the managed portfolio over a benchmark portfolio. The contract parameters …

portfolio in face of real and nominal risk. Current account deficits are financed by net capital flows which reflect … assets. This ensures stability of the world wealth distribution. An attractive feature of the model is that portfolio shares …