Atlas Support
Get in touch 日本語
NewsNewsWritten and edited by:

A paper on income persistence and household asset formation

Atlas Support’s Economic Research team introduces a life-cycle study of how savings and stockholding change when income shocks vary in persistence at the same scale of income variation.

Income Risk and Household Asset Formation: Life-Cycle Portfolio Choice with Reference to Japanese Income Statistics

The study compares seven income processes with the same scale of residual income variation but different persistence, compositions of transitory and persistent shocks, or distributions. The model tracks consumption, saving, and stockholding from age 25 through retirement and includes the costs of entering and holding assets in the stock market.