Asset allocation

NARROWER TERMS:
Working paper

Global stores of value and the International role of the renminbi

We explore the conditions under which a financial asset emerges as a global store of value and can co-exist with a pre-existing (incumbent) store of value. In our model the acceptability of an asset as a global store is driven by the issuing region’s financial...
Working paper

Dynamic asset allocation when bequests are luxury goods

Luxury bequests impart systematic e ects of age to an investor's optimal allocation: the expected percentage allocation to equities rises throughout retirement. When bequests are luxuries the marginal utility of bequests declines more slowly than the marginal utility of consumption. This is essentially lower risk...