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The Size and Composition of Wealth Holdings in the United States, Italy, and the Netherlands

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  • Arie Kapteyn
  • Constantijn Panis

Abstract

This paper analyzes retirement saving and portfolio choice in the United States, Italy, and the Netherlands. While these countries enjoy roughly the same standard of living, they vary widely in their institutional organization of retirement income provisions. Building on extensions of the life cycle model, we derive hypotheses on the implications of institutional differences for wealth accumulation and portfolio composition. Examples of implications are that the ratio of net worth and gross wealth should be highest in Italy, that Dutch households should hold the lowest wealth levels at retirement and that the ownership of risky assets should be highest in the U.S. We investigate these and other hypotheses at both the macro and micro level and find that the data are generally consistent with the hypotheses.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10182.

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Date of creation: Dec 2003
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Handle: RePEc:nbr:nberwo:10182

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Citations

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Cited by:
  1. Fonseca, Raquel & Michaud, Pierre-Carl & Sopraseuth, Thepthida, 2007. "Entrepreneurship, Wealth, Liquidity Constraints and Start-up Costs," IZA Discussion Papers 2874, Institute for the Study of Labor (IZA).
  2. Luigi Guiso & Michael Haliassos & Tullio Jappelli, 2002. "Household Stockholding in Europe: Where Do We Stand and Where Do We Go?," University of Cyprus Working Papers in Economics, University of Cyprus Department of Economics 0209, University of Cyprus Department of Economics.
  3. Graziella Bertocchi, 2007. "The vanishing bequest tax. The Comparative Evolution of Bequest Taxation in Historical Perspective," Center for Economic Research (RECent), University of Modena and Reggio E., Dept. of Economics 005, University of Modena and Reggio E., Dept. of Economics.
  4. Raffaele Miniaci & Sergio Pastorello, 2010. "Mean-variance econometric analysis of household portfolios," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 25(3), pages 481-504.
  5. Casper van Ewijk & Erik Canton & Paul Tang, 2004. "Ageing and international capital flows," CPB Document, CPB Netherlands Bureau for Economic Policy Analysis 43, CPB Netherlands Bureau for Economic Policy Analysis.
  6. Arie Kapteyn & Constantijn Panis, 2003. "The Size and Composition of Wealth Holdings in the United States, Italy, and the Netherlands," Working Papers, RAND Corporation Publications Department 03-05, RAND Corporation Publications Department.
  7. Raquel Fonseca & Pierre-Carl Michaud & Thepthida Sopraseuth, 2007. "Entrepreneurship, Liquidity Constraints and Start-up Costs," Social and Economic Dimensions of an Aging Population Research Papers, McMaster University 173, McMaster University.
  8. Arjan Heyma, 2004. "A structural dynamic analysis of retirement behaviour in the Netherlands," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 19(6), pages 739-759.
  9. Jonathan Crook & Stefan Hochguertel, 2007. "US and European Household Debt and Credit Constraints," Tinbergen Institute Discussion Papers 07-087/3, Tinbergen Institute.
  10. Christian Helmenstein & Alexia Prskawetz & Yuri Yegorov, 2002. "Wealth and cohort size: stock market boom or bust ahead?," MPIDR Working Papers WP-2002-051, Max Planck Institute for Demographic Research, Rostock, Germany.
  11. Annamaria Lusardi, 2002. "Saving Viewed from a Cross-National Perspective," MEA discussion paper series, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy 02024, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
  12. Egbert Jongen, 2009. "An analysis of individual accounts for the unemployment risk in the Netherlands," CPB Document, CPB Netherlands Bureau for Economic Policy Analysis 186, CPB Netherlands Bureau for Economic Policy Analysis.

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