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Modelling the composition of personal sector wealth in the United Kingdom

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  • Blake, David

Abstract

The allocation of UK personal sector wealth across five broad asset categories (net financial wealth, housing (and durable assets) wealth, state pension wealth, private pension wealth, and human capital) is investigated using the FAIDS (financial AIDS) model. Apart from total wealth and returns, additional variables relating to capital market imperfections, and demographic, labour market and cross- sector spillover effects turn out to be significant. The adjustment of portfolio weights to shocks is very slow, taking up to 21 years for some asset categories.

Suggested Citation

  • Blake, David, 2003. "Modelling the composition of personal sector wealth in the United Kingdom," LSE Research Online Documents on Economics 24866, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:24866
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    File URL: http://eprints.lse.ac.uk/24866/
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    References listed on IDEAS

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    Cited by:

    1. Matteo Ricciarelli, 2009. "Investment choice and asset allocation of Italian households: the discrete-continuous approach," Applied Economics, Taylor & Francis Journals, vol. 43(6), pages 651-662.

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    More about this item

    Keywords

    FAIDS model; personal sector; financial wealth; housing wealth; pension wealth; human capital;
    All these keywords.

    JEL classification:

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

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