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Locus of Control and Investment in Risky Assets
Salamanca, Nicolas - 2016
We show that household heads with a strong internal economic locus of control are more likely to hold equity and hold a larger share of equity in their investment portfolio. This relation holds when we control for economic preferences and possible confounders such as financial literacy,...
Persistent link: https://www.econbiz.de/10012977336
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Skewness Expectations and Portfolio Choice
Drerup, Tilman H.; Wibral, Matthias; Zimpelmann, Christian - 2022
Many models of investor behavior predict that investors prefer assets that they believe to have positively skewed return distributions. We provide a direct test of this prediction in a representative sample of the Dutch population. Using individual-level data on return expectations for a broad...
Persistent link: https://www.econbiz.de/10013406448
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Household Portfolio Choice, Reference Dependence, and the Marriage Market
Li, Wenchao - 2017
This paper bridges the financial market and the marriage market using a reference-dependent mechanism. Male-biased sex ratios induce families with sons to hold more risky assets, since competitive marital payment in a tight market raises the reference level of marriage expenditure for such...
Persistent link: https://www.econbiz.de/10012963843
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Portfolio Allocation, Income Uncertainty and Households' Flight from Risk
Brown, Sarah - 2016
Analysing the US Panel Study of Income Dynamics, we present a new empirical method to investigate the extent to which households reduce their financial risk exposure when confronted with background risk. Our novel modelling approach – termed a deflated fractional ordered probit model –...
Persistent link: https://www.econbiz.de/10012977335
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To Own or Not to Own? Household Portfolios, Demographics and Institutions in a Cross-National Perspective
Sierminska, Eva - 2014
Using harmonized wealth data and a novel decomposition approach, we show that cohort effects exist in the income profiles of asset and debt portfolios for a sample of European countries, the U.S. and Canada. We find that younger households' participation decisions in assets are more responsive...
Persistent link: https://www.econbiz.de/10013061937
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Financial Advice and Household Financial Portfolios
Brown, Sarah; Bucciol, Alessandro; Montagnoli, Alberto; … - 2023
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
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Optimal Price Indices for Targeting Inflation Under Incomplete Markets
Anand, Rahul - 2010
study the optimal choice of price index in markets with financial frictions. Financial frictions that limit credit …-constrained consumers' access to financial markets make demand insensitive to interest rate fluctuations. The demand of credit … consumers are credit-constrained …
Persistent link: https://www.econbiz.de/10013139035
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Should Easier Access to International Credit Replace Foreign Aid?
Bandyopadhyay, Subhayu - 2011
hypotheses empirically. Our main findings are that: (i) better access to international credit for a recipient country reduces the …
Persistent link: https://www.econbiz.de/10013119295
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Migrant Entrepreneurs and Credit Constraints Under Labour Market Discrimination
Frijters, Paul - 2011
entrepreneurship and credit constraints under labour market discrimination. We divide self employed into prefer to be self-employed and … similar in terms of risk taking preferences and network size. Want-to-be entrepreneurs however suffer from credit constraints … level of credit constraints may be worth 2% of GDP per year direct earnings increases …
Persistent link: https://www.econbiz.de/10013120403
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Monitoring Costs, Credit Constraints and Entrepreneurship
Banerji, Sanjay - 2012
provide the labour to the units. Often, they fail to grow in size even with the relaxation of credit constraints. In this … framework, we show that possibility of an inverted U- shaped relationship between the credit supply and the size of the firm … to both frictions in the credit and labour markets …
Persistent link: https://www.econbiz.de/10013104968