Formal dynamic analyses of household portfolio choice in the literature focus on holdings of equity and a risk … riskless short-term bond- and are exposed to uninsurable idiosyncratic risk through nonfinancial income as well as aggregate … risk through the asset returns. An application shows that the low Treasury returns observed in the US between 2009 and 2013 …

or long-term unemployment, may occur during working years. Personal disaster risk alters lifetime ex-ante investment …This paper examines households' self-insurance in financial markets when a rare personal disaster, such as disability … choices, even if most workers will not experience a disaster. Uncertainty about the size of human capital losses, which …