The DOI matches its Crossref record; 52 of the 52 references it cites were found in a registry or an index.
Optimal Life‐Cycle Asset Allocation: Understanding the Empirical Evidence
Open accessAbstract
We show that a life‐cycle model with realistically calibrated uninsurable labor income risk and moderate risk aversion can simultaneously match stock market participation rates and asset allocation decisions conditional on participation. The key ingredients of the model are Epstein–Zin preferences, a fixed stock market entry cost, and moderate heterogeneity in risk aversion. Households with low risk aversion smooth earnings shocks with a small buffer stock of assets, and consequently most of them (optimally) never invest in equities. Therefore, the marginal stockholders are (endogenously) more risk averse, and as a result they do not invest their portfolios fully in stocks.
Overview
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Citations
Cites
Epstein, L. G., & Zin, S. E. (1989) · Econometrica · doi:10.2307/1913778 · Cited by 4,262
Consumption Over the Life Cycle
Gourinchas, P.-O., & Parker, J. A. (2002) · Econometrica · doi:10.1111/1468-0262.00269 · Cited by 1,781
Buffer-Stock Saving and the Life Cycle/Permanent Income Hypothesis
Carroll, C. D. (1997) · The Quarterly Journal of Economics · doi:10.1162/003355397555109 · Cited by 1,696
Saving and Liquidity Constraints
Deaton, A. (1991) · Econometrica · doi:10.2307/2938366 · Cited by 1,598
Consumption and Portfolio Choice over the Life Cycle
Cocco, J. F., Gomes, F. J., & Maenhout, P. J. (2005) · Review of Financial Studies · doi:10.1093/rfs/hhi017 · Cited by 1,530
Self-citationSaving and Liquidity Constraints
Deaton, A. (1989) · National Bureau of Economic Research · doi:10.3386/w3196 · Cited by 1,341
The consumption of stockholders and nonstockholders
Mankiw, N. G., & Zeldes, S. P. (1991) · Journal of Financial Economics · doi:10.1016/0304-405x(91)90015-c · Cited by 1,273
Capital Market Equilibrium with Transaction Costs
Constantinides, G. M. (1986) · Journal of Political Economy · doi:10.1086/261410 · Cited by 1,095
The Buffer-Stock Theory of Saving: Some Macroeconomic Evidence
Carroll, C. D., Hall, R. E., & Zeldes, S. P. (1992) · Brookings Papers on Economic Activity · doi:10.2307/2534582 · Cited by 1,059
Precautionary Saving and Social Insurance
Hubbard, R. G., Skinner, J., & Zeldes, S. P. (1995) · Journal of Political Economy · doi:10.1086/261987 · Cited by 1,051
Cited by
Consumption and Portfolio Choice over the Life Cycle
Cocco, J. F., Gomes, F. J., & Maenhout, P. J. (2005) · Review of Financial Studies · doi:10.1093/rfs/hhi017 · Cited by 1,530
Self-citationOwner-Occupied Housing and the Composition of the Household Portfolio
Flavin, M., & Yamashita, T. (2002) · American Economic Review · doi:10.1257/000282802760015775 · Cited by 832
Optimal Financial Knowledge and Wealth Inequality
Lusardi, A., Michaud, P.-C., & Mitchell, O. S. (2017) · Journal of Political Economy · doi:10.1086/690950 · Cited by 690
Do older investors make better investment decisions?
Korniotis, G. M., & Kumar, A. (2011) · Review of Economics and Statistics · doi:10.1162/rest_a_00053 · Cited by 565
Portfolio Choice over the Life‐Cycle when the Stock and Labor Markets Are Cointegrated
BENZONI, L., COLLIN‐DUFRESNE, P., & GOLDSTEIN, R. S. (2007) · The Journal of Finance · doi:10.1111/j.1540-6261.2007.01271.x · Cited by 466
Metadata
- Authors
- GOMES, F., & MICHAELIDES, A.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 2005-03-02
- Volume
- 60
- Issue
- 2
- Pages
- 869-904
- ISSN
- 0022-1082
- 1540-6261
- OpenAlex
- W3124623099
- Cited by
- 773
- References
- 52
- FWCI
- 163.98
- Type
- journal article
- Language
- en
- Open access
- green
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
How to cite
Cite CoChat for the checks on this page, and the paper for its own findings.
- This page
- CoChat. (2026). Citation check: Optimal Life‐Cycle Asset Allocation: Understanding the Empirical Evidence. https://app.cochat.ai/papers/10.1111/j.1540-6261.2005.00749.x
- The paper
- GOMES, F., & MICHAELIDES, A. (2005). Optimal Life‐Cycle Asset Allocation: Understanding the Empirical Evidence. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.2005.00749.x
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
