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The private equity premium puzzle revisited: new evidence on the role of heterogeneous risk attitudes
Fossen, Frank M. - 2008
The empirical finding that entrepreneurs tend to invest a large share of their wealth in their own firms despite comparably low returns and high risk has become known as the private equity premium puzzle. This paper provides evidence supporting the hypothesis that lower risk aversion of...
Persistent link: https://www.econbiz.de/10010271074
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Cognitive biases and entrepreneurial under-diversification
Cervellati, Enrico Maria; Pattitoni, Pierpaolo; … - 2016
Cognitive biases lead entrepreneurs to overinvest in their own companies, over exposing themselves to idiosyncratic risk. Our novel theoretical model explains entrepreneurial under-diversification by measuring the amount of potential bias in entrepreneurs' portfolio allocations brought about by...
Persistent link: https://www.econbiz.de/10011703409
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Home Equity Conversion Mortgages : The Secondary Market Investor Experience
Begley, Jaclene - 2017
We analyze Fannie Mae's experience with the Home Equity Conversion Mortgage product. From 1993-2010, Fannie Mae acquired 492,465 of these loans, representing 75% of the total market. During this period, prior to recent program changes, credit screening was not an element in the underwriting...
Persistent link: https://www.econbiz.de/10012945322
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The Effect of Housing on Portfolio Choice
Chetty, Raj - 2016
We show that characterizing the effects of housing on portfolios requires distinguishing between the effects of home equity and mortgage debt. We isolate exogenous variation in home equity and mortgages by using differences across housing markets in house prices and housing supply elasticities...
Persistent link: https://www.econbiz.de/10012983105
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Homeownership and Portfolio Choice Over the Generations
Paz-Pardo, Gonzalo - 2021
reduction in homeownership across generations. Lower-income households find it harder to buy housing, and as a result accumulate …
Persistent link: https://www.econbiz.de/10013243806
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Fractional Homeownership and its Impact on Life Cycle Portfolio Choice
Koch, Marlene - 2023
Using a quantitative life cycle model, we study the impact of access to fractional homeownership on individuals …' optimal consumption, savings, and housing decisions. Fractional homeownership means that two parties - an individual and an … fractional homeownership is most attractive to particularly young and old individuals. Further, it leads to earlier housing …
Persistent link: https://www.econbiz.de/10014349695
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How much should an investor trust the startup entrepreneur? : a network model
Klabunde, Anna - 2013
Trust is an important determinant of start-up financing. In a simple agentbased model it is determined what the best trusting strategy is for a collective of investors and whether it is rational for an individual investor to deviate from this collective optimum. Trust depends on a measure of...
Persistent link: https://www.econbiz.de/10010206205
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The endowment effect on entrepreneurs : a risky attachment
Echeverry Peñón, Isabela; Reyes Ortega, Santiago - In: Estudios de economía 45 (2018) 2, pp. 231-249
This paper presents evidence on the role of the endowment effect in shaping the risk-taking behavior of entrepreneurs, and how the potential of losing their firms lead them to take higher risks. This study uses an experimental design with 466 entrepreneurs in Cali, Colombia. Results show that...
Persistent link: https://www.econbiz.de/10011982570
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Locus of control and savings
Cobb-Clark, Deborah A.; New, Sonja C. de; Sinning, Mathias - 2013
Dieses Papier analysiert den Zusammenhang zwischen individueller Kontrollüberzeugung ("locus of control") und Sparverhalten in Form von Vermögensakkumulation, Sparraten und Portfolio-Entscheidungen. Locus of control is ein psychologisches Konzept, welches die individuelle Überzeugung über...
Persistent link: https://www.econbiz.de/10010225093
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Locus of control and savings
Cobb-Clark, Deborah A.; New, Sonja C. de; Sinning, Mathias - 2013
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/10010228778