We test whether probability weighting affects household portfolio choice in a representative
survey. On average, people display inverse-S-shaped probability weighting, overweighting …

We explicitly derive and explore the optimal consumption and portfolio policies of a loss-
averse individual who endogenously updates his or her reference level over time. We find …

We explicitly derive and explore the optimal consumption and portfolio policies of a
lossaverse individual who endogenously updates his reference level over time. We find that …

Private enterprise development in low-income countries remains elusive, and the failure of
microcredit to stimulate small firm growth poses a puzzle to the finance and development …

This paper introduces the emergent concept of subjective life-expectancies into the
discussion of life-cycle consumption, savings, and portfolio choice. We present new …