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  • Open Access

Life Cycle Portfolio Choice: A Swiss Perspective

Swiss Journal of Economics and Statistics2007143:BF03399238

https://doi.org/10.1007/BF03399238

  • Published:

Summary

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

Notes

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