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

  • Attilio Gardini

    ()

    (Department of Statistics, University of Bologna)

  • Alessandro Magi

    ()

    (Department of Statistics, University of Bologna)

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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File URL: ftp://ftp.gde.unibocconi.it/gde_articles/2007/GDE_V66_N1_P93-114.pdf
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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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  1. Guiso, Luigi & Jappelli, Tullio, 2006. "Information Acquisition and Portfolio Performance," CEPR Discussion Papers 5901, C.E.P.R. Discussion Papers.
  2. Gadi Barlevy & Pietro Veronesi, . "Information Acquisition in Financial Markets," CRSP working papers 484, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
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  15. Guiso, Luigi & Jappelli, Tullio & Terlizzese, Daniele, 1996. "Income Risk, Borrowing Constraints, and Portfolio Choice," American Economic Review, American Economic Association, vol. 86(1), pages 158-72, March.
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  20. Michael Haliassos, 2002. "Stockholding: Recent Lessons from Theory and Computations," University of Cyprus Working Papers in Economics 0206, University of Cyprus Department of Economics.
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