Showing 1 - 10 of 165
We provide a new explanation to the limited stock market participation puzzle. In deciding whether to buy stocks, investors factor in the risk of being cheated. The perception of this risk is a function not only of the objective characteristics of the stock, but also of the subjective...
Persistent link: https://www.econbiz.de/10010298311
, Ageing and Retirement in Europe supplemented with regional information on generalized trust from the World Value Survey and …
Persistent link: https://www.econbiz.de/10010303716
We analyze global data about electricity generation and document that the risk exposure of a firm's owners and its workers depends on competitors' ability or willingness to change their output in response to productivity shocks. Competitor inflexibility appears to be a risk factor: the sales of...
Persistent link: https://www.econbiz.de/10011550439
We present an intertemporal consumption model of consumer investment in financial literacy. Consumers benefit from such investment because their stock of financial literacy allows them to increase the returns on their wealth. Since literacy depreciates over time and has a cost in terms of...
Persistent link: https://www.econbiz.de/10010308561
In talent-intensive jobs, workers’ quality is revealed by their performance. This enhances productivity and earnings, but also increases layoff risk. Firms cannot insure workers against this risk if they compete fiercely for talent. In this case, the more risk-averse workers will choose less...
Persistent link: https://www.econbiz.de/10014110369
Inflation-targeting central banks have only imperfect knowledge about the effect of policy decisions on inflation. An important source of uncertainty is the relationship between inflation and unemployment. This paper studies the optimal monetary policy in the presence of uncertainty about the...
Persistent link: https://www.econbiz.de/10010311991
The paper documents lack of awareness of financial assets in the 1995 and 1998 Bank of Italy Surveys of Household Income and Wealth. It then explores the determinants of awareness, and finds that the probability that survey respondents are aware of stocks, mutual funds and investment accounts is...
Persistent link: https://www.econbiz.de/10010298272
Many studies show that most people are not financially literate and are unfamiliar with even the most basic economic concepts. However, the evidence on the determinants of economic literacy is scant. This paper uses international panel data on 55 countries from 1995 to 2008, merging indicators...
Persistent link: https://www.econbiz.de/10010303690
We merge administrative information from a large German discount brokerage firm with regional data to examine if …
Persistent link: https://www.econbiz.de/10010303719
indirect participation through mutual funds and retirement accounts. Since the decision to invest in less information … abilities and stockholding is driven by information constraints, rather than by features of preferences or psychological traits. …
Persistent link: https://www.econbiz.de/10010303747