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The tendency to underestimate the future value of a variable growing at a constant rate, anexample of exponential growth bias, has been linked to household financial decision making.We show that exponential growth bias and standard measures of financial literacy arenegatively correlated in a...
Persistent link: https://www.econbiz.de/10009353904
The household debt-to-disposable income ratio in Canada increased from 110 per cent in 1999 to 127 per cent in 2007. This increase has raised questions about the ability of households to service their increased debt if faced with a negative economic or socio-economic shock. The debt service...
Persistent link: https://www.econbiz.de/10003790564
We investigate, using the 2002 US Health and Retirement Study, the factors influencing individuals' insecurity and expectations about terrorism, and study the effects these last have on households' portfolio choices and spending patterns. We find that females, the religiously devout, those...
Persistent link: https://www.econbiz.de/10003864066
This paper provides a joint analysis of household stockholding participation, stock location among stockholding modes, and participation spillovers, using data from the US Survey of Consumer Finances. Our multivariate choice model matches observed participation rates, conditional and...
Persistent link: https://www.econbiz.de/10003864094
Persistent link: https://www.econbiz.de/10003896726
Overindebted private households have created economic and political concern. Using measures of relative (over-) indebtedness which relate household income and debt services to different concepts of subsistence levels, this paper investigates whether severe household indebtedness is driven by...
Persistent link: https://www.econbiz.de/10003903627
Using a new nationally representative survey of financial capability and experience in the UK and Ireland, I investigate the key factors that cause individuals to experience financial distress. In this context, a key area that I focus on is whether individuals' behavioural traits, such as their...
Persistent link: https://www.econbiz.de/10008902392
In this paper, we present two stylized models of the financial system. We make the case that in order to realize the potential of a well-functioning complete financial market, financial system designers and financial service providers will need to think about ways to deliver financial...
Persistent link: https://www.econbiz.de/10008907307
Since 2002 the German government seeks to stimulate private retirement savings by means of special allowances and tax exemptions - the so-called Riester scheme. We apply matching and panel regression techniques to assess the impact of the Riester scheme on households' propensities to save in a...
Persistent link: https://www.econbiz.de/10003952553
This paper investigates the main individual driving forces of Hungarian household credit risk and measures the shockabsorbing capacity of the banking system in relation to adverse macroeconomic events. The analysis relies on survey evidence gathered by the Magyar Nemzeti Bank (MNB) in January...
Persistent link: https://www.econbiz.de/10003604928