Date | Feb 14, 2023 |
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Speaker | 장용성 |
Dept. | 서울대학교 경제학부 |
Room | 27-325 |
Time | 16:00-17:00 |
Based on administrative data from Statistics Norway, we find economically significant shifts in households' financial portfolios around individual structural breaks in labor-income volatility. According to our estimates, when income risk doubles, households reduce their risky share of financial assets by 5 percentage points, thus tempering their overall risk exposure. We show that our estimated risky share response is consistent with a standard portfolio choice model augmented with idiosyncratic, time-varying income volatility.