The Impact of Investment Behaviour for Individual Welfare
Bibliographic Data
| ID | 9726472 |
|---|---|
| Authors | Thomas Post (0000-0002-7782-1742, Maastricht University), Helmut Gründl (Goethe‐Universität Frankfurt), Joan T Schmit (University of Wisconsin–Madison), Anja Zimmer (German Insurance Association) |
| Year | 2014 |
| Volume | 81 |
| Issue | 321 |
| Pages | 15-47 |
| Publication date | 2014-01-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/ecca.12036 |
| OpenAlex | W3122035323 |
| Language | EN |
| References cited | 45 |
The industrialized world has experienced a demographic shift that is straining public pension systems. Employer‐sponsored pension plans change from defined benefit to defined contribution. More emphasis is put on individually managed retirement funds. One concern with this movement is the potential negative effect on individual welfare if households' investment behaviour is suboptimal. Using micro‐level US data, we compare the optimal utility computed using a lifecycle model with the actual utility as reflected in empirical asset allocation choices. Average estimated welfare costs are below 3% of households' endowment (assets and human capital); yet specific population groups experience higher welfare costs
Actuarial science · Asset (computer security) · Asset allocation · Economic growth · Economics · Endowment · Endowment policy · Human capital · Investment (military) · Labour economics · Market economy · Microeconomics · Pension · Population · Population ageing · Public economics · Welfare · demographic modeling and climate adaptation · Finance · Financial Literacy, Pension, Retirement Analysis · Global Health Care Issues
State of World Population 2007
The nature of precautionary wealth
Lifetime Portfolio Selection under Uncertainty
Lifetime Portfolio Selection By Dynamic Stochastic Programming
Borrowing Costs and the Demand for Equity over the Life Cycle
Financial literacy and stock market participation
Subjective measures of risk aversion, fixed costs, and portfolio choice
Are Americans Saving “Optimally” for Retirement
Down or Out
Financial Literacy and Retirement Preparedness
Are You Sure You're Saving Enough for Retirement
| Citation velocity | historical |
|---|---|
| Highly cited | No |