Borrowing Costs and the Demand for Equity over the Life Cycle
构建了一个生命周期模型，引入借贷成本与无风险回报率之间的差异，发现当借贷成本等于股权预期回报率时，股权需求最小；该模型能同时拟合借贷和股权持有的实证数据。
We construct a life cycle model that delivers realistic behavior for both equity holdings and borrowing. The key model ingredient is a wedge between the cost of borrowing and the risk-free investment return. Borrowing can either raise or lower equity demand, depending on the cost of borrowing. A borrowing rate equal to the expected return on equity-which we show roughly matches the data-minimizes the demand for equity. Alternative models with no borrowing or limited borrowing at the risk-free rate cannot simultaneously fit empirical evidence on borrowing and equity holdings. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.