We analyze whether relative risk aversion varies with wealth. We first derive theoretical predictions on how risky … Dynamics. Contrary to the existing literature, our empirical results show evidence of relative risk aversion varying with …

negatively affects homeownership, and this effect is long-lasting. The risk of a divorce triggers a precautionary savings motive … partially substitute for precautionary savings. When young, the larger asset accumulation due to divorce-risk induced …We build a realistically calibrated life-cycle model of housing decisions under divorce risk. As observed in the data …

include if (i) she becomes more risk averse, (ii) investment opportunities shrink, (iii) investment returns become riskier, or … continuation utility, which produces the same qualitative changes in savings rates as lowering the interest rate. …

-induced uncertainty makes non-cooperative and risk-averse households behave more myopically, resulting in a Nash equilibrium of a Pareto …

-induced uncertainty makes non-cooperative and risk-averse households behave more myopically, resulting in a Nash equilibrium of a Pareto …

several decades, yet it is very much in contradiction to prevailing macroeconomic theory. This paper finds that a standard …

(positive) impact on households’ consumption (savings), even after we control for family income. We argue that people save to … inequality can strengthen the incentives of status-seeking savings by increasing the benefit of improving status and enlarging …