Download or read book Towards an Explanation of Household Portfolio Choice Heterogeneity written by Annette Vissing-Jorgensen and published by . This book was released on 2002 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper uses micro data on income and asset holdings from the Panel Study of Income Dynamics and other US household level data sets to analyze reasons for nonparticipation in the stock market and for heterogeneity in portfolio choice within the set of stock market participants. I find evidence of a positive effect of mean nonfinancial income on the probability of stock market participation and on the proportion of wealth invested in stocks conditional on being a participant. The volatility of nonfinancial income is found to have a negative impact on these two quantities. However, there is no evidence of an effect of the correlation of nonfinancial income with the stock market return on portfolio choice. Three different costs of stock market participation are considered, a fixed transactions cost, a proportional transactions cost, and a per period participation cost. I find evidence of structural state dependence in the stock market participation decision supporting the importance of fixed transactions costs. This is supported by findings of higher trading frequencies for high wealth households. Based on a simple model of the benefits of stock market participation I estimate that a per period stock market participation cost of just 50 dollars is sufficient to explain the choices of half of stock market nonparticipants

Download or read book TOWARDS AN EXPLAINING OF HOUSEHOLD PORTFOLIO CHOICE HETEROGENEITY NONFINANCIAL INCOME AND PARTICIPATION COST STRUCTURES written by Annette VISSING-JØRGENSEN and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Toward an Explanation of Household Portfolio Choice Heterogenity written by Annette Vissing-Jorgensen and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Heterogeneity and Persistence in Returns to Wealth written by Andreas Fagereng and published by International Monetary Fund. This book was released on 2018-07-27 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: We provide a systematic analysis of the properties of individual returns to wealth using twelve years of population data from Norway’s administrative tax records. We document a number of novel results. First, during our sample period individuals earn markedly different average returns on their financial assets (a standard deviation of 14%) and on their net worth (a standard deviation of 8%). Second, heterogeneity in returns does not arise merely from differences in the allocation of wealth between safe and risky assets: returns are heterogeneous even within asset classes. Third, returns are positively correlated with wealth: moving from the 10th to the 90th percentile of the financial wealth distribution increases the return by 3 percentage points - and by 17 percentage points when the same exercise is performed for the return to net worth. Fourth, wealth returns exhibit substantial persistence over time. We argue that while this persistence partly reflects stable differences in risk exposure and assets scale, it also reflects persistent heterogeneity in sophistication and financial information, as well as entrepreneurial talent. Finally, wealth returns are (mildly) correlated across generations. We discuss the implications of these findings for several strands of the wealth inequality debate.

Download or read book Heterogeneity in Stock Market Expectations and Portfolio Choice of American Households written by KÉZDI GÁBOR. and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Heterogeneous Relationship of Owner Occupied and Investment Property with Household Portfolio Choice written by Marco Felici and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The dual nature of property as both a consumption and an investment good makes itdifficult for households to decide how much capital to allocate to it. In fact, the theoreticalliterature predicts a constraint imposed by property on investment and the empiricalliterature has brought evidence that this constraint, in some form, exists, but neglectingto investigate its heterogeneity and to differentiate between owner-occupied andinvestment property. With reference to the predictions of a stochastic control model, weturn to the Wealth and Assets Survey panel for the UK, which allows to break down indetail households' portfolios, to show empirically how the relationship between propertyand stockholdings depends on the value of property relative to the size of the entireportfolio. While on average a 1% increase in the share of owner-occupied property inthe total portfolio is estimated to correspond to 0.07% decrease in the share of stocks inliquid assets, this estimate is 0 for low values of the owner-occupied property share anddecreases as the share increases, so that for an owner-occupied property share of 90%, a1% increase corresponds to a 0.14% decrease in the share of stocks in liquid assets. Consistentwith the prediction that only consumption-relevant property places a constrainton portfolio choice, no relationship can be identified for Buy-to-Let property.

Download or read book Household Portfolios written by Luigi Guiso and published by MIT Press. This book was released on 2002 with total page 552 pages. Available in PDF, EPUB and Kindle. Book excerpt: Theoretical and empirical analysis of the structure of household portfolios.

Download or read book Essays in Dynamic Household Finance with Heterogeneous Agents written by and published by . This book was released on 2008 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Effects of Health Status on Household Portfolio Choice written by Moritz Meyer and published by GRIN Verlag. This book was released on 2011-11-21 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2009 in the subject Economy - Health Economics, grade: 1,0, European University Institute, language: English, abstract: The literature on household finance establishes a framework to understand the portfolio choice of individuals. In the light of demographic transition this research proposal focuses on the health status of individuals and uses empirical data to understand how the health status itself and changes in this variable influence the portfolio choice. The key contribution of this research proposal is to characterize the health status of individuals using a newly available and previously unexploited measure. Instead of employing categorical variables, we introduce the subjective life expectancy as measure for the health status. This approach offers several advantages because it captures additional information such as an expectational component about the future health status. Using the self- reported health status this information was not considered although dynamic models clearly point at the influence of expectations on the household portfolio choice. To estimate the impact of the health status on the portfolio choice of individuals we use the German SAVE dataset provided by the Mannheim Research Institute on the Economics of Aging.

Download or read book Lifecycle Investing written by Ian Ayres and published by ReadHowYouWant.com. This book was released on 2010-05 with total page 358 pages. Available in PDF, EPUB and Kindle. Book excerpt: Diversification provides a well-known way of getting something close to a free lunch: by spreading money across different kinds of investments, investors can earn the same return with lower risk (or a much higher return for the same amount of risk). This strategy, introduced nearly fifty years ago, led to such strategies as index funds. What if we were all missing out on another free lunch that’s right under our noses? InLifecycle Investing, Barry Nalebuff and Ian Ayres-two of the most innovative thinkers in business, law, and economics-have developed tools that will allow nearly any investor to diversify their portfolios over time. By using leveraging when young-a controversial idea that sparked hate mail when the authors first floated it in the pages ofForbes-investors of all stripes, from those just starting to plan to those getting ready to retire, can substantially reduce overall risk while improving their returns. InLifecycle Investing, readers will learn How to figure out the level of exposure and leverage that’s right foryou How the Lifecycle Investing strategy would have performed in the historical market Why it will work even if everyone does it Whennotto adopt the Lifecycle Investing strategy Clearly written and backed by rigorous research,Lifecycle Investingpresents a simple but radical idea that will shake up how we think about retirement investing even as it provides a healthier nest egg in a nicely feathered nest.

Download or read book What Drives the Heterogeneity in Portfolio Choice The Role of Institutional Traditional and Behavioral Factors written by Markku Kaustia and published by . This book was released on 2019 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: We analyze household stock market participation and allocation in a survey covering 19 European countries. We jointly control for all relevant variables from prior studies, which typically focus on one at a time, and omit risk-aversion. Excellent full model predictive power decomposes into institutional (country) fixed effects (30%), traditional individual-level variables (50%), and more recently identified behavioral variables (20%), and a single latent factor captures 93% of total explanatory power. We sketch a hierarchical framework where factors' effects vary by agents' proneness to participate. We also challenge and complement existing interpretations given to IQ, sociability, trust, and life experiences.

Download or read book The Implications of Heterogeneity and Inequality for Asset Pricing written by Stavros Panageas and published by Now Publishers. This book was released on 2020-11-23 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Implications of Heterogeneity and Inequality for Asset Pricing provides a unified framework to better understand this large literature and to reconcile several of the seemingly inconsistent results found in some seminal papers.

Download or read book Handbook of the Economics of Finance written by G. Constantinides and published by Elsevier. This book was released on 2003-11-04 with total page 698 pages. Available in PDF, EPUB and Kindle. Book excerpt: Arbitrage, State Prices and Portfolio Theory / Philip h. Dybvig and Stephen a. Ross / - Intertemporal Asset Pricing Theory / Darrell Duffle / - Tests of Multifactor Pricing Models, Volatility Bounds and Portfolio Performance / Wayne E. Ferson / - Consumption-Based Asset Pricing / John y Campbell / - The Equity Premium in Retrospect / Rainish Mehra and Edward c. Prescott / - Anomalies and Market Efficiency / William Schwert / - Are Financial Assets Priced Locally or Globally? / G. Andrew Karolyi and Rene M. Stuli / - Microstructure and Asset Pricing / David Easley and Maureen O'hara / - A Survey of Behavioral Finance / Nicholas Barberis and Richard Thaler / - Derivatives / Robert E. Whaley / - Fixed-Income Pricing / Qiang Dai and Kenneth J. Singleton.

Download or read book Real Estate and its Role in Household Portfolio Choice written by Cornelia Kullmann and published by . This book was released on 2012 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: We empirically examines the financial portfolio choice of households as a function of their exposure to real estate risk as a possible background risk. Using Panel Study of Income Dynamics data from 1984 to 2001, our estimation results control for sample selection and unobservable time-invariant heterogeneity in an environment of non-strictly exogenous explanatory variables. Our analysis finds that larger real estate exposure is correlated with a lower likelihood of stock market participation and with reduced holdings of stocks and other risky financial assets in households' financial asset portfolios. We also measure the variability of homeowners' house values and provide evidence that it is also associated with lower stock market participation and, conditional on participation, lower equity investments.Previous version titled quot;Real Estate and its Role in Asset Allocationquot.

Download or read book Stockholding in Europe written by L. Guiso and published by Palgrave Macmillan. This book was released on 2002-11-15 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: The past decade has been a time of drastic developments, both in financial markets and in related academic research. Among the most striking developments are the expanded stockholder base, the increased popularity of mutual funds among households, and the growing importance of private pension funds. Developments in Europe mirror to a large extent the spread of equity culture in the United States, but with lower levels of involvement and interesting differences across European countries. This book, intended for a wide audience of students, practitioners, and policy makers, provides the theoretical and methodological background necessary for analysis of stockholding behaviour, and presents empirical studies that use the most comprehensive household-level databases to identify determinants of stockholding in five major European countries.

Download or read book Journal of Housing Research written by and published by . This book was released on 2006 with total page 1430 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The New Palgrave Dictionary of Economics written by and published by Springer. This book was released on 2016-05-18 with total page 7493 pages. Available in PDF, EPUB and Kindle. Book excerpt: The award-winning The New Palgrave Dictionary of Economics, 2nd edition is now available as a dynamic online resource. Consisting of over 1,900 articles written by leading figures in the field including Nobel prize winners, this is the definitive scholarly reference work for a new generation of economists. Regularly updated! This product is a subscription based product.