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Household Asset-Holding Diversification in Australia

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  • Francesco Mariotti
  • Karen Mumford
  • Yolanda Pena-Boquete

Abstract

type="main" xml:lang="en"> We explore asset-holding diversification by Australian households; in particular, the household asset diversification participation decision (whether or not to diversify at all) is jointly estimated with the decision of how much to diversify. In so doing, recent literature on the modelling of proportions is combined with the growing body of research concerning household financial decision-making. Our findings are consistent with the participation of households operating in diverse financial markets being constrained by ineffective information conduits, influencing the decision of whether or not to diversify.

Suggested Citation

  • Francesco Mariotti & Karen Mumford & Yolanda Pena-Boquete, 2015. "Household Asset-Holding Diversification in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 48(1), pages 43-64, March.
    • Handle: RePEc:bla:ausecr:v:48:y:2015:i:1:p:43-64
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    Cited by:

    1. Roger Wilkins, 2021. "Economic Wellbeing," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 469-481, December.
    2. Mariotti, Francesco & Mumford, Karen A. & Pena-Boquete, Yolanda, 2015. "Power-Couples and the Colocation Hypothesis Revisited," IZA Discussion Papers 9059, Institute of Labor Economics (IZA).
    3. Mackenzie, Lesego & Mburu, John & Irungu, Patrick, 2017. "Analysis Of Household Choice And Determinants Of Livelihood Diversification Activities In Chobe District, Botswana," Dissertations and Theses 269268, University of Nairobi, Department of Agricultural Economics.
    4. Francesco Mariotti & Karen Mumford & Yolanda Pena-Boquete, 2017. "Education, job insecurity and the within country migration of couples," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-18, December.
    5. Cardak, Buly A. & Martin, Vance L. & McAllister, Richard, 2019. "The effects of the Global Financial Crisis on the stock holding decisions of Australian households," The North American Journal of Economics and Finance, Elsevier, vol. 50(C).
    6. Francesco Mariotti & Maria Dickson & Karen Mumford & Yolanda Pena-Boquete, 2016. "Job Insecurity Within the Household: Are Australian Householders Caring When it Comes to Risk Sharing?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 19(2), pages 77-90.

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    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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