Based on administrative data from Statistics Norway, we find economically significant shifts in households' financial portfolios around structural breaks in income volatility. When the standard deviation of labor-income growth doubles, the share of risky assets decreases by 4 percentage points....

We investigate the mapping from individual to aggregate labor supply using a general equilibrium heterogeneous-agent model with incomplete market. Heterogeneity of the workforce is designed such that the evolution of wages, worker flows between employment and nonemployment, and cross-sectional...

The standard theory of household-portfolio choice is hard to reconcile with the following facts: (i) Households hold a small amount of equity despite the higher average rate of return. (ii) The share of risky assets increases with the age of the household. (iii) The share of risky assets is...