Human Capital Investment and Optimal Portfolio Choice
نویسندگان
چکیده
In this paper we analyze how an individual should optimally invest in human capital when he also has financial wealth. We treat the individual’s option to take more education as expansion options and apply real option analysis. We characterize the individual’s optimal consumption strategy and portfolio weights. The individual has a demand for hedging financial risk, labor income risk, and also wage level risk.
منابع مشابه
Human capital investment and portfolio choice over the life-cycle∗
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