Financial Windfalls, Portfolio Allocations, and Risk Preferences

We thank Jess Benhabib, Jaroslav Borovicka, John Campbell, Andrew Caplin, Samuel Hanson, David Laibson, Sydney Ludvigson, Peter Maxted, Andrei Shleifer, Paolo Sodini, Adi Sunderam, Boris Vallee, Luis Viceira, Gianluca Violante, and various seminar participants for insightful discussion and comments. We also gratefully acknowledge financial support from the NBER Household Finance working group (22-2382-13-1-33-003), the Swedish Council for Working Life and Social Research (2011-1437), the Swedish Research Council (421-2011-2139 and 2022-02686), Handelsbanken’s Research Foundations (P2011:0032:1), Riksbankens Jubileumsfond (P15-0514:1), and the Ragnar Söderberg Foundation (E4/17). The analysis and conclusions set forth here are those of the authors and do not necessarily indicate concurrence by the Goldman Sachs Group, Inc. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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