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Skewness Expectations and Portfolio Choice

Drerup, Tilman H.; Wibral, Matthias; Zimpelmann, Christian - 2022

Many models of investor behavior predict that investors prefer assets that they believe to have positively skewed return distributions. We provide a direct test of this prediction in a representative sample of the Dutch population. Using individual-level data on return expectations for a broad...

Persistent link: https://www.econbiz.de/10013406448

Differences in Euro-Area Household Finances and Their Relevance for Monetary-Policy Transmission

Hintermaier, Thomas - 2019

This paper quantifies the extent of heterogeneity in consumption responses to changes in real interest rates and house prices in the four largest economies in the euro area: France, Germany, Italy, and Spain. We first calibrate a life-cycle incomplete-markets model with a financial asset and...

Persistent link: https://www.econbiz.de/10012859309

Locus of Control and Savings

Cobb-Clark, Deborah A. - 2013

This paper analyzes the relationship between individuals' locus of control and their savings behavior, i.e. wealth … accumulation, savings rates, and portfolio choices. Locus of control is a psychological concept that captures individuals' beliefs …-of-control gap in savings rates is largest among rich households, the gap in wealth accumulation is particularly large for poor …

Persistent link: https://www.econbiz.de/10013071285

A Theory of Social Impact Bonds

Tortorice, Daniel L. - 2020

Social impact bonds (SIBs) are an innovative financing mechanism for public goods. In a SIB, an investor provides capital to a service provider for a social intervention. The investor receives a return based on the outcome of the intervention relative to a predetermined benchmark. We describe...

Persistent link: https://www.econbiz.de/10012829219

Financial Advice and Household Financial Portfolios

Brown, Sarah; Bucciol, Alessandro; Montagnoli, Alberto; … - 2023

We investigate the role of financial advice in shaping the composition of household portfolios in Great Britain. Advice is associated with a reallocation of wealth away from real estate and towards bonds and stocks, especially when households seek financial advice "for investments". Having a...

Persistent link: https://www.econbiz.de/10014258262

Risk and Saving in Two-Person Households : More Scope for Precautionary Saving

Apps, Patricia - 2012

The existing literature suggests that when the saving decision of two-earner households under risk is analysed, standard results on the existence of precautionary saving no longer apply: precautionary saving is obtained if and only if very stringent conditions hold. This paper shows that when...

Persistent link: https://www.econbiz.de/10013099761

Hidden Insurance in a Moral Hazard Economy

Bertola, Giuseppe - 2013

We consider an economy where individuals privately choose effort and trade competitively priced securities that pay off with effort-determined probability. We show that if insurance against a negative shock is sufficiently incomplete, then standard functional form restrictions ensure that...

Persistent link: https://www.econbiz.de/10013071425

Life Cycle Saving and Dissaving Revisited Across Three-Tiered Income Groups : Starting Hypotheses, Refinement Through Literature Review, and Ideas for Empirical Testing

Holzmann, Robert - 2019

The lifecycle approach is the workhorse to model saving decisions of individuals. It conjectures individuals preferring a constant consumption stream across their lifecycle saving till retirement and dis-saving thereafter. The reality is often at odd with this assumption giving rise to our...

Persistent link: https://www.econbiz.de/10012861295

Population Policies, Demographic Structural Changes, and the Chinese Household Saving Puzzle

Ge, Suqin - 2012

Using combined data from population censuses and Urban Household Surveys, we study the effects of demographic structural changes on the rise in household saving in China. Variations in fines across provinces on unauthorized births under the one-child policy and in cohort-specific fertility...

Persistent link: https://www.econbiz.de/10013096769

Early Health, Risk Aversion and Stock Market Participation

Bockerman, Petri - 2019

To examine the relationship between early health status and financial decisions in adulthood, we link information on birth weight in 1966 from the Northern Finland Birth Cohort to data from the Finnish Central Securities Depository over the period of 1995-2010. We find that persons predisposed...

Persistent link: https://www.econbiz.de/10012870140