We investigate the impact of local agglomeration economies on household portfolio choice. Using detailed location and employment data from two U.S. household surveys, we document that individuals who work in locally agglomerated industries are more likely to invest in risky assets. This pattern...

Based on the 10-K listings of public firms, we identify economic connections among U.S. states, which lead to excess comovement in returns and liquidity of firms headquartered in connected states. The economic connections create spillover effects whereby the economy of a state affects its...

This paper extends the traditional life-cycle hypothesis to allow for rewards from consumption and savings. In the new model, the utility function depends both on consumption and savings, resulting in differing marginal propensities to consume (DMPC) from current income, current wealth, and...