This paper studies the dynamic optimization problem of a household when portfolio adjustment is costly. The analysis is … stocks. We use this, and related observations, to estimate the parameters of household preferences and portfolio adjustment … costs. We find significant adjustment costs, beyond the direct costs of buying and selling assets. These adjustment costs …

This paper studies the dynamic optimization problem of a household when portfolio adjustment is costly. The analysis is … stocks. We use this, and related observations, to estimate the parameters of household preferences and portfolio adjustment … costs. We find significant adjustment costs, beyond the direct costs of buying and selling assets. These adjustment costs …

In this paper we empirically test if loss-aversion affects household participation in equity markets, household … allocations to equity, and household allocations between mutual funds and individual stocks. Using household survey data, we … obtain direct measures of each surveyed household's loss-aversion coefficient from questions involving hypothetical payoffs …

I exploit a natural experiment to show that household investment decisions depend on the manner in which information is …

This paper analyses the relation between individual migrations and the risk attitudes of other household members when … migration is a household decision. We develop a simple model that implies that which member migrates depends on the distribution … of risk attitudes among all household members, and that the risk diversification gain to other household members may …