Non-CRRA Preferences
Non-CRRA preferences may generate rebalancing over the life-cycle. For instance, if individuals have hyperbolic Bernoulli utility
Merton (1971) shows that the optimal portfolio risky share depends on age even without labor income:
(4.2)
With 
, older investors take less financial risk than the young. Gollier and Zeckhauser (2002) consider a general characterization of risk tolerance and show that departure from linearity generates ...
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