"What is complicated is not necessarily insightful and what is insightful is not necessarily complicated: Risks welcomes simple manuscripts that contribute with insight, outlook, understanding and overview"-a quote from the first editorial of this journal [1]. Good articles are not characterized...

The empirically observed hump-shaped pattern in individuals' consumption over their life cycle cannot be explained by the classical consumption-savings model. We explicitly solve an extended model with utility depending on both consumption and leisure and with endogenous educational decisions...

The observed hump-shaped life-cycle pattern in individuals' consumption cannot be explained by the classical consumption-savings model. The consensus explanation is that the hump is caused by constraints and unspanned risks. However, we explicitly show that the consumption hump naturally emerges...

We consider portfolio optimization problems with expected loss constraints under the physical measure P and the risk neutral measure Q, respectively. Using Merton's portfolio as a benchmark portfolio, the optimal terminal wealth of the Q-risk constraint problem can be easily replicated with the...

We formalize a consumption-investment-insurance problem with the distinction of a state-dependent relative risk aversion. The state-dependence refers to the state of the finite state Markov chain that also formalizes insurable risks such as health and lifetime uncertainty. We derive and analyze...

In the decumulation phase of a pension plan, consumption depends on the level of annuitization. We measure the welfare loss of an individual with a demand for annuitization if he has no access to annuitization or, equivalently, does not use such access. We find for realistic parameters and a...