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Stockholding: Participation, Location, and Spillovers

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  • Christelis, Dimitris
  • Georgarakos, Dimitris
  • Haliassos, Michalis

Abstract

This paper provides the first joint analysis of household stockholding participation, location among stockholding modes, and participation spillovers. Our model matches observed participation, conditional and unconditional, and asset location patterns. We find that financial sophistication correlates strongly only with direct stockholding and mutual fund participation, while social interactions mainly influence stockholding through retirement accounts. Whether retirement account owners include stocks in them strongly depends on owner characteristics, unlike with mutual fund owners and investment in stock funds. Stockholding is more common among retirement account owners, but mainly because of owner characteristics rather than spillovers from retirement account ownership.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8113.

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Date of creation: Nov 2010
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Handle: RePEc:cpr:ceprdp:8113

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Keywords: Asset location; household finance; multivariate probit; retirement accounts; simulated maximum likelihood; Stockholding;

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References

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Citations

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Cited by:
  1. Nataliya Barasinska & Dorothea Schäfer, 2013. "Is the Willingness to Take Financial Risk a Sex-Linked Trait?: Evidence from National Surveys of Household Finance," Discussion Papers of DIW Berlin 1278, DIW Berlin, German Institute for Economic Research.
  2. Becker, Gideon & Dimpfl, Thomas, 2014. "Labor income risk and the reluctance of fouseholds to invest in risky financial assets: A panel data analysis," University of Tuebingen Working Papers in Economics and Finance 72, University of Tuebingen, Faculty of Economics and Social Sciences.
  3. Christelis, Dimitris & Georgarakos, Dimitris, 2013. "Investing at home and abroad: Different costs, different people?," Journal of Banking & Finance, Elsevier, vol. 37(6), pages 2069-2086.
  4. Michael Berlemann & Marc-André Luik, 2014. "Institutional Reform and Depositors' Portfolio Choice - Evidence from Censored Quantile Regressions," CESifo Working Paper Series 4782, CESifo Group Munich.

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