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. We extend the analysis of the effect of trust on portfolio choice to include the dominant component of households …' portfolios, real estate. In a simple model, we show how the effect of trust on expected investment returns affects portfolio … composition, including the share of real estate. Using data from the European Social Survey, we estimate individual-level trust as …
Persistent link: https://www.econbiz.de/10013136779
We examine how emerging market (EM) investors allocate their stock portfolios internationally. Using both country-level and institution-level data, we find that the coming wave of EM investors systematically over- and under-weight their holdings in some target countries. These abnormal foreign...
Persistent link: https://www.econbiz.de/10013013596
We investigate the role of financial advice in shaping the composition of household portfolios in Great Britain. Advice is associated with a reallocation of wealth away from real estate and towards bonds and stocks, especially when households seek financial advice "for investments". Having a...
Persistent link: https://www.econbiz.de/10014258262
This paper uses data from the British National Child Development Study to investigate the relationship between social interaction and participation in the stock market through holding stocks and/or shares at the individual level. In accordance with the existing literature, the results reveal...
Persistent link: https://www.econbiz.de/10013144393
with the analysis of trust and trustworthiness in Germany by combiningrepresentative survey data with representative … behavioral data from a social dilemmaexperiment. We identify which survey questions intended to elicit people's trust correlate … wellwith behaviorally exhibited trust in the experiment. People above the age of 65, highly skilledworkers and people living in …
Persistent link: https://www.econbiz.de/10014255643
Using comparable survey data from twelve European countries we investigate households' attitudes towards mortgage indebtedness. We find that a given debt burden creates much higher distress in Southern countries, France and Belgium, where fewer households have a mortgage outstanding relative to...
Persistent link: https://www.econbiz.de/10013149816
This paper analyzes the relationship between individuals' locus of control and their savings behavior, i.e. wealth accumulation, savings rates, and portfolio choices. Locus of control is a psychological concept that captures individuals' beliefs about the controllability of life events and is a...
Persistent link: https://www.econbiz.de/10013071285
possible confounders such as financial literacy, overconfidence, optimism, trust, and other personality traits. We argue that …
Persistent link: https://www.econbiz.de/10012977336
Despite the resultant disutility, some people, in particular, the poor, are engaged in behaviors that carry social stigma. Empirical studies on stigmatized behavior are rare, largely due to the formidable challenges of collecting data on stigmatized goods and services. In this paper, we add to...
Persistent link: https://www.econbiz.de/10012923212
We examine the effects of social preferences and beliefs about the social preferences of others in a simple leader-follower voluntary contributions game. We find that groups perform best when led by those who are reciprocally oriented. Part of the effect can be explained by a false consensus...
Persistent link: https://www.econbiz.de/10012765318