This paper provides a novel tax behavior explanation for investor home bias. Specifically, we show that investors are reluctant to hold foreign equity with a tax levied by a foreign tax collector. Starting point is the observation that willingness to pay taxes depends on the attributes of the...

This study empirically analyses the influence of tax concessions on decisions regarding retirement savings in Austria. We analyse real decisions on retirement savings by using qualitative data. This allows us to examine how different, perceived decision-making criteria have led to actual...

Frequent shifting of household portfolio composition may erode wealth due to poor market timing and transaction costs. If household preferences are stable, the optimal wealth maximizing strategy is periodically rebalancing to maintain a relatively constant ratio of investment assets to wealth...

Frequent shifting of household portfolio composition may erode wealth due to poor market timing and transaction costs. If household preferences are stable, the optimal wealth maximizing strategy is periodically rebalancing to maintain a relatively constant ratio or investment assets to wealth...

This study uses a national dataset to examine the association among risk tolerance, financial literacy, and goals-based savings behavior of households. The results indicate that three out of five households do not have any emergency funds set aside, and about half the households have not...

This paper uses an administrative panel dataset to examine Swedish households' socially responsible investing (SRI) in mutual funds. We zoom in on the differences between all and wealthy households because of the wealthy households' importance for the economy. Surprisingly, wealthy households...

Normative analyses of household financial decisions typically assume parameters of the household utility function. Some general issues on parameter assumptions for normative analysis are discussed in this study. We review selected normative household analyses appearing in finance and economics...

This survey reviews the growing literature on pairs trading frameworks, i.e., relative-value arbitrage strategies involving two or more securities. The available research is categorized into five groups: The distance approach uses nonparametric distance metrics to identify pairs trading...

Does the timing of labour earnings taxation encroaches upon capital income taxation and individual risk-taking investment decisions, i.e. portfolio selection? This paper presents the results of a laboratory experiment that is, contrary to previous approaches, not restricted to the analysis of...