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Using longitudinal data from PSID, we show the positive relation between labor income and the equity share of financial wealth is stronger for those who have a higher persistence in shocks to permanent labor income. The results support the hypothesis that the cross sectional variation in...
Persistent link: https://www.econbiz.de/10013024082
We use a unique dataset with bank clients' security holdings for all German banks to examine how macroeconomic shocks affect asset allocation preferences of households and non-financial firms. Our analysis focuses on two alternative mechanisms which can influence portfolio choice: wealth shocks,...
Persistent link: https://www.econbiz.de/10013057161
We use a unique dataset with bank clients' security holdings for all German banks to examine how macroeconomic shocks affect asset allocation preferences of households and non-financial firms. Our analysis focuses on two alternative mechanisms which can influence portfolio choice: wealth shocks,...
Persistent link: https://www.econbiz.de/10012988743
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This paper analyses household portfolio choice post-bankruptcy using the 2019 Survey of Consumer Finances (SCF) data … set. While much work has been done on the determinants of household bankruptcy, the effect of bankruptcy on household … investment preferences has received limited attention. Although we find that household risk tolerance and stock market …
Persistent link: https://www.econbiz.de/10014237836