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Modelling the behaviour of household’s investment

Author

Listed:
  • Widayat
  • Wahjoedi
  • M. Syafi?ie Idrus

    (Faculty of Economics and Business, Universitas Muhammadiyah Malang
    Faculty of Economics, Universitas Negeri Malang
    Faculty of Economics and Business, Universitas Brawijaya Malang)

Abstract

Household investment has become more important in modern economies. This research builds a behavioural model of investment using a quantitative approach. It tests the effect of socioeconomic condition, financial literacy, and attitudes toward intention and investment decision. The data are collected from 400 heads of household through a structured interview. A sample is selected by a multistage technique. It applies a Structural Equation Modelling to answer the research problem. This paper is successful in constructing a good structural and measurement model to explain the behaviour of the dependent variables in the model.

Suggested Citation

  • Widayat & Wahjoedi & M. Syafi?ie Idrus, 2011. "Modelling the behaviour of household’s investment," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 3(2), pages 165-177, April.
    • Handle: RePEc:uii:journl:v:3:y:2011:i:2:p:165-177
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    References listed on IDEAS

    as
    1. Sachiko Miyata, 2003. "Household's risk attitudes in Indonesian villages," Applied Economics, Taylor & Francis Journals, vol. 35(5), pages 573-583.
    2. Paul Gerrans & Marilyn Clark‐Murphy & Craig Speelman, 2010. "Asset allocation and age effects in retirement savings choices," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 50(2), pages 301-319, June.
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    Cited by:

    1. Avineri, Erel, 2012. "On the use and potential of behavioural economics from the perspective of transport and climate change," Journal of Transport Geography, Elsevier, vol. 24(C), pages 512-521.
    2. Chatterjee, Kiron & Sherwin, Henrietta & Jain, Juliet, 2013. "Triggers for changes in cycling: the role of life events and modifications to the external environment," Journal of Transport Geography, Elsevier, vol. 30(C), pages 183-193.

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    More about this item

    Keywords

    Behavioural model of investment; investment; quantitative; household;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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