IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/19512.html

Stock Market Ownership Transitions

Author

Listed:
  • Bonaparte, Yosef
  • Korniotis, George
  • Kumar, Alok
  • Michaelides, Alexander
  • Zhang, Yuxin

Abstract

A significant portion of U.S. households enters and exits investment accounts. Empirically, income and wealth changes are related to these transitions, with income changes not affecting the retired. A life-cycle model with participation costs cannot match the observed ownership dynamics, but an extension with stock-market crash better fits the average participation rate and ownership transitions of the middle-aged and retired. This extended model does not match the ownership dynamics of the young, which are better captured by a model with elevated income risk. Overall, these findings indicate that ownership transitions respond to wealth shocks across the life-cycle, both in our model and the data.

Suggested Citation

  • Bonaparte, Yosef & Korniotis, George & Kumar, Alok & Michaelides, Alexander & Zhang, Yuxin, 2024. "Stock Market Ownership Transitions," CEPR Discussion Papers 19512, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:19512
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP19512
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:19512. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CEPR (email available below). General contact details of provider: https://cepr.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.