Equity culture has spread among households on both sides of the Atlantic. We analyze the likely changes in behavior of households that enter the stock market in response to arrival of information about how to invest in stocks. Without borrowing constraints, the improved prospects arising from...

This paper studies effects of income-based and collateral borrowing constraints on wealth accumulation andportfolios. We compare unconstrained and constrained behavior for different types of constraints and degrees of tightness.Income-based constraints can reduce or eliminate effects of earnings...

We analyze life-cycle wealth accumulation and portfolio choice under career uncertainty and quantifiable departures from expected utility maximization. Our specification nests expected utility and three types of non-expected utility: 1) Kreps-Porteus preferences which disentangle risk aversion...

This paper describes participation of Cyprus households in various debts using data from the first (1999) Cyprus Survey of Consumer Finances. It complements our previous paper that described household participation in various types of assets (Haliassos et al., 2001). Debts considered encompass...

This paper describes participation of Cyprus households in financial and real assets using new data from the 1999 Cyprus Survey of Consumer Finances, and compares Cyprus to the United States and four major European countries. Almost 9 out of 10 Cyprus households own some financial asset. After...

This paper studies the effects of two classes of borrowing constraints, collateral and income based, on wealth accumulation, portfolio behavior, and precautionary motives. We examine the sensitivity of solutions to the tightness of constraints, education levels, and preference parameters. The...

This paper studies effects of two classes of borrowing constraints, collateral- and income-based, on wealth accumulation, portfolio behavior and on precautionary motives. We examine the sensitivity of solutions to tightness of constraints, education level, and preference parameters. The models...

Neither Northerners are willing to invest in a South they perceive as unwilling to undertake necessary structural reforms, nor are Southerners willing to invest in their countries in a climate of austerity and policy uncertainty imposed, in their view, by the North. This results in a vicious...

Findings from four recent projects on how neighbors, peers, financial advisors, and exogenous stressors affect wealth accumulation are presented. Having neighbors with college economics or business education promotes retirement saving. Greater local wealth inequality and mobility at the start of...