POLECAMY
Redakcja:
Krzysztof Jajuga, Łukasz Feldman, Radosław Pietrzyk, Paweł Rokita
Format:
ibuk
„This monograph [...] will be an interesting and inspiring reading matter for a broad public”.
prof. dr hab. Grażyna Trzpiot
University of Economics in Katowice
”The book is the fi rst study of this kind in Poland and, I think, a unique one on a global level. This is thanks to the originality of the models proposed there, as well as because of a holistic approach adopted by the Authors. Using this approach, they explain mechanisms and determinants of a household’s functioning throughout its whole life cycle, particularly in terms of the fi nancial effects”.
dr hab. Zbigniew Krysiak
Warsaw School of Economics
Rok wydania | 2015 |
---|---|
Liczba stron | 298 |
Kategoria | Inne |
Wydawca | Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu |
ISBN-13 | 978-83-7695-528-5 |
Język publikacji | polski |
Informacja o sprzedawcy | ePWN sp. z o.o. |
POLECAMY
Ciekawe propozycje
Risk perception in financial and...
do koszyka
Democracy at Risk
do koszyka
Public Risk Management
do koszyka
Public Risk Management
do koszyka
Sociologizing Corruption Risk
do koszyka
Spis treści
Introduction | 9 |
1 Financial planning in a household | 13 |
1.1 Basic problems of personal finance | 14 |
1.2 Financial planning in personal finance | 19 |
1.3 Decision making by individuals and households | 27 |
1.3.1 Needs and preferences of household’s members | 27 |
1.3.2 Decision making process | 30 |
1.3.3 Utility theory | 32 |
1.3.4 Utility-based choice theory | 36 |
1.4 Intertemporal choice and consumption models | 42 |
2 Risk in personal finance | 53 |
2.1 Risk – basic concepts | 53 |
2.2 The role of risk in household financial planning | 60 |
2.3 Types of risk and risk factors | 67 |
2.3.1 Life-length risk | 74 |
2.3.2 Risk of investments and financing | 77 |
2.3.3 Income risk | 80 |
2.3.4 Risk of events (insurance-like events) | 82 |
2.3.5 Risk of goal realization | 83 |
2.3.6 Operational risk of plan management (the risk of plan implementation) | 86 |
2.3.7 Model risk | 89 |
2.4 Measurement of risk | 91 |
2.4.1 Risk measures based on the statistical distribution of risk variable | 92 |
2.4.2 Risk measures based on the dependence on risk factors | 99 |
2.4.3 Risk measurement for a discrete variable | 99 |
2.4.4 Risk measurement for the time variable | 101 |
2.4.5 Extreme risk measurement | 103 |
2.4.6 Risk measurement in a multivariate case | 105 |
2.4.7 Concluding remarks | 107 |
2.5 Steering of risk | 108 |
3 Household – definition, preferences and goals | 115 |
3.1 Definition of the household | 116 |
3.2 Financial goals of households | 118 |
3.2.1 Type I (Child) | 124 |
3.2.2 Type II (Retirement) | 125 |
3.2.3 Type III (House) | 126 |
3.2.4 Type IV (Endowment) | 128 |
3.2.5 Type V (Bequest) | 129 |
3.3 Stochastic goals in household financial planning | 130 |
3.3.1 Time and magnitude distributions | 133 |
3.3.2 Child’s birth moment | 134 |
3.3.3 House value and purchase time | 136 |
3.3.4 Distribution of household end (for the moment of bequest goal realization) | 137 |
3.3.5 Distribution of the survival scenario | 138 |
3.4 Financing of the goals | 138 |
3.4.1 Pre-financing | 139 |
3.4.2 Post-financing | 140 |
3.4.3 Remarks on pre- and post-financing cash flows | 142 |
3.4.4 Contingency financing | 142 |
3.5 Household preferences | 144 |
3.5.1 Utility function and risk aversion | 144 |
3.5.2 The bequest motive | 146 |
3.5.3 Multiple goals | 150 |
3.5.4 Preferences in the model | 153 |
4 Household financial planning model | 160 |
4.1 General concepts and assumptions | 161 |
4.1.1 Main financial categories | 161 |
4.1.2 Critical dates | 166 |
4.1.3 Retirement investment schemes | 168 |
4.1.4 The role of the bequest motive | 175 |
4.2 Life-length risk aversion in the model | 176 |
4.3 A model with the retirement goal only | 180 |
4.4 Extension to include other financial goals | 189 |
4.4.1 Augmenting the model by the stochastic child’s birth time | 189 |
4.4.2 Type III goal in the model | 191 |
4.4.3 Including Type III goal using quantiles of real estate price distribution | 193 |
4.5 Financing goals and risk of financing | 195 |
5 Including risk in the household financial planning model | 197 |
5.1 Considered types of risk and the way of incorporating them into the model | 197 |
5.2 Integrated measures of risk | 203 |
5.2.1 Residual Wealth at Risk (RWaR) | 206 |
5.2.2 Residual Wealth Volatility (RWV) | 208 |
5.2.3 Residual Wealth Aspiration Level (RWAL) | 209 |
5.2.4 Lifetime Cumulated Net Cash Flow at Risk (LCNCFaR, LCaR). | 210 |
5.2.5 Incremental shortfall (ISh) | 213 |
5.2.6 Shortfall Scenario Probability (ShSP) | 214 |
5.2.7 Household Default Probability (HDP) | 215 |
5.3 Managing plan under risk | 218 |
6 The model at work – numerical examples and analysis of model properties | 223 |
6.1 The width of the range of concern and plan performance under life-length risk | 225 |
6.2 The role of the consumption preference and the bequest motive – numerical example | 239 |
6.3 Life-length risk sharing within a couple | 246 |
6.4 Risk of investment in the model – numerical examples | 261 |
6.5 Summary of numerical examples | 281 |
Conclusions | 284 |
References | 286 |
List of figures | 293 |
List of tables | 295 |