Life Cycle Portfolio Choice: A Swiss Perspective

50 Pages Posted: 18 Oct 2006

See all articles by Florian Zainhofer

Florian Zainhofer

University of Fribourg (Switzerland) - Chair for Financial Management

Date Written: December 2006

Abstract

We use panel data from the Swiss Labor Force Survey to estimate age-earnings profiles as well as transitory and permanent income shock variances for investor groups distinguished by gender, education and activity rate. Estimation results are then used to stylize several different Swiss investor types. Finally, we determine optimal life cycle consumption, savings and risky asset share for these investor types using a recent computational life cycle model of portfolio choice suggested by Cocco et al. (2005). We are particularly interested in the allocation differences between the investor types and their normative implications.

Keywords: Personal finance, financial planning, life cycle model, portfolio choice

JEL Classification: G11, D14, D91, H55

Suggested Citation

Zainhofer, Florian, Life Cycle Portfolio Choice: A Swiss Perspective (December 2006). Available at SSRN: https://ssrn.com/abstract=937307 or http://dx.doi.org/10.2139/ssrn.937307

Florian Zainhofer (Contact Author)

University of Fribourg (Switzerland) - Chair for Financial Management ( email )

Fribourg, CH 1700
Switzerland

HOME PAGE: http://www.unifr.ch/finanzmanagement

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