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Why do Household Portfolio Shares Rise in Wealth?

Listed author(s):
  • Motohiro Yogo

    (University of Pennsylvania)

  • Jessica Wachter

    (University of Pennsylvania)

expenditure share for basic goods declines in total consumption, and the variance of consumption growth rises in the level of consumption. When calibrated to match these two predictions in household consumption data, the model explains portfolio shares that rise in wealth.

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Paper provided by Society for Economic Dynamics in its series 2007 Meeting Papers with number 929.

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Date of creation: 2007
Handle: RePEc:red:sed007:929
Contact details of provider: Postal:
Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

Web page: http://www.EconomicDynamics.org/
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