Based on the German Socio-economic Panel (SOEP), we show that household consumption drops and saving rises significantly within four years after a child moves out of a household. Per capita consumption of parents is approximately leveled up to that of childless peers after all children are gone....

Based on the Italian Survey on Household Income and Wealth (SHIW) and the German Socio-economic Panel (SOEP), we show that household consumption drops after a child moves out of a household, while at the same time, per capita consumption increases significantly. Parents approximately upgrade...

This paper presents the results of an asset allocation experiment on the influence of the investment horizon on risk taking. We investigate exposures to the risky asset for an investment horizon of one and two periods in a dynamic setting. We found no significant difference in allocations.

This paper considers the equity risk premium in the German capital market. First of all, we discuss empirical problems associated with the computation of the equity risk premium. Particularities of the German capital market receive special attention. Next, we compute the predicted risk premium...

Based on the German Socio-economic Panel (SOEP), we show that household consumption drops and saving rises significantly within four years after a child moves out of a household. Per capita consumption of parents is approximately leveled up to that of childless peers after all children are gone....