Portfolio Choice Over the Life Cycle: A Survey

Posted: 10 Dec 2020

Date Written: November 2020


Life-cycle portfolio choice models capture the role of human capital, housing, borrowing constraints, background risk, and several other crucial ingredients for determining the savings and investment decisions of households. Over the last two decades, this literature has provided us with multiple insights regarding the asset allocation decisions of individual investors. This article provides a critical survey of this research and suggests directions for future research, namely incorporating additional forms of household heterogeneity.

Suggested Citation

Gomes, Francisco, Portfolio Choice Over the Life Cycle: A Survey (November 2020). Annual Review of Financial Economics, Vol. 12, pp. 277-304, 2020, Available at SSRN: https://ssrn.com/abstract=3744669 or http://dx.doi.org/10.1146/annurev-financial-012820-113815

Francisco Gomes (Contact Author)

London Business School ( email )

Finance Department
Sussex Place - Regent's Park
London NW1 4SA
United Kingdom

HOME PAGE: http://sites.google.com/view/francisco-gomes/home

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