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Household Stockholding Behavior During the Great Financial Crisis

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  • Jie Zhou

Abstract

Using the Panel Study of Income Dynamics, this paper studies household stock market participation and trading behavior in 2007–09, a period that saw a major stock market downswing. The stock market participation rate fell after the market crash. We find evidence that less-educated households, poor households and households with heads belonging to a minority are the ones that dropped out of the market after the market crash. We also find that, of the households that held stocks in non-retirement accounts in 2007, a significant portion reported no stock market activity in non-retirement accounts during the crisis period.

Suggested Citation

  • Jie Zhou, 2015. "Household Stockholding Behavior During the Great Financial Crisis," Staff Working Papers 15-15, Bank of Canada.
  • Handle: RePEc:bca:bocawp:15-15
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    File URL: https://www.bankofcanada.ca/wp-content/uploads/2015/05/wp2015-15.pdf
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    References listed on IDEAS

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    Cited by:

    1. Guerdjikova, A. & Quiggin, J., 2019. "Market selection with differential financial constraints," Working Papers 2019-01, Grenoble Applied Economics Laboratory (GAEL).
    2. Ani Guerdjikova & John Quiggin, 2019. "Market Selection with Differential Financial Constraints," Working Papers hal-02005501, HAL.

    More about this item

    Keywords

    Asset Pricing; Financial markets;

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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