Optimal Life-Cycle Investing with Flexible Labor Supply: A Welfare Analysis of Life-Cycle Funds

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Francisco J. Gomes; Laurence J. Kotlikoff; Luis M. Viceira;
  • Journal: American Economic Review, volume 98, issue 2 May, pages 297-303
  • Identifiers: doi: 10.1257/aer.98.2.297
  • Subject:
    • jel: jel:E21 | jel:D1 | jel:G23 | jel:H55 | jel:D14 | jel:G11 | jel:G2 | jel:H31 | jel:D91 | jel:J22

We investigate optimal consumption, asset accumulation and portfolio decisions in a realistically calibrated life-cycle model with flexible labor supply. Our framework allows for wage rate uncertainly, variable labor supply, social security benefits and portfolio choice... View more
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