measure income risk as the observed variation of household income over a five year period. We find that indeed higher income … theory suggests that with increasing labor income risk, the reluctance of households to hold stocks increases. We propose to … risk reduces the propensity to invest in stocks. However, when controlling for household heterogeneity as well as …

We develop a methodology to estimate households’ exposure to systematic income risk and its causal effect on portfolio … substantial cross-sectional variation in systematic income risk. We find that households more exposed to business cycle … decisions. The identification strategy relies on household fixed effects and a novel instrument based on major corporate events …

category. Background risk exerts a significant impact on household portfolios, resulting in a 'flight from risk', away from …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 …

What determines the risk structure of financial portfolios of German households? In this paper we estimate the … determinants of the share of financial wealth invested in three broad risk classes. We employ a new econometric approach - the so … that self-assessed appetite for risk as well as the level of wealth have strong positive effects on the riskiness of the …

The article assesses the economic condition of households in a time frame view (2000-2016) in the light of income and … polarisation of the analysed variables is dependent on the geographical area of residence. The data from the research on household …

This paper examines the impact of demographic, socioeconomic and risk aversion factors on diversification in Australian … household asset portfolios using Wave 6 of the HILDA Survey. Household assets are categorised as home and other property … characteristics examined include family structure and composition, the source and level of income, age, gender and attitudes towards …

This article aims at linking the household wealth and income distributions for 15 European countries using the … Household Finance and Consumption Survey. We study the role played by the household's location in the income distributions in … the position in the income distribution and by intergenerational transfers on the probability to be in a given wealth …

This article aims at linking the household wealth and income distributions for 15 European countries using the … Household Finance and Consumption Survey. We study the role played by the household's location in the income distributions in … the position in the income distribution and by intergenerational transfers on the probability to be in a given wealth …

income risk affects equity ownership turnover. A portfolio choice model with an income process extracted from survey data … shows that idiosyncratic income shocks are more important for dynamic equity ownership decisions than aggregate stock market … risk. The model yields realistic estimates for the coefficient of relative risk aversion (= 3.09) and the discount factor …