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Stock Market Participation: New Empirical Evidence from Italian Households'Behavior

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Author Info
Attilio Gardini () (Department of Statistics, University of Bologna)
Alessandro Magi () (Department of Statistics, University of Bologna)

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Abstract

This paper provides new and updated empirical evidence about the stockholding behavior of Italian households. By exploiting Bank of Italy SHIW data, we find that in the period 2000-2004 stock market participation rates declined markedly, in contrast with what happened in other European countries and in the U.S. In order to understand this fact, we propose some explanations based on the estimation results of crosssectional and panel data probit regressions. We stress the importance of irrationality and myopic behavior and their relationships with the level of investors’ education.

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Publisher Info
Article provided by GDE (Giornale degli Economisti e Annali di Economia), Bocconi University in its journal Giornale degli Economisti e Annali di Economia.

Volume (Year): 66 (2007)
Issue (Month): 1 (March)
Pages: 93-114
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Handle: RePEc:gde:journl:gde_v66_n1_p93-114

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Related research
Keywords: stock market participation; probit regression; behavioral finance;

Find related papers by JEL classification:
C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models
G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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This page was last updated on 2009-11-30.


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