The project will last one year and is funded by CINTIA – Centro Interuniversitario Netspar Italy. The grant was awarded to the University of Turin; partner institutions are the Imperial College London, the University of Alicante and FONDACO.
This project focuses on three major issues closely related to managing risks over working life:
1. Extending the life cycle model of consumption and portfolio choice to properly account for possible permanent consequences from unemployment. In addition, we provide empirical analysis of labor income risks and portfolio choice
2. Improving the traditional life cycle model of consumption and portfolio choice to account for alternative motivations to accumulate financial wealth.
3. Implementing equally-weighted risk contribution portfolios as a tool to provide robust efficient diversification of financial risks
The study involves CeRP fellows Carolina Fugazza (PI), Fabio Bagliano, Giovanna Nicodano, Claudio Campanale. CeRP is also currently hosting Raffaele Corvino, Ph.D. Candidate in Finance, Cass Business School – City University London, who has been awarded a research grant by CINTIA to collaborate to the project with a study on life cycle portfolio choices.