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Household Asset Holding Diversification in Australia

Author

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  • Francesco Mariotti
  • Karen Mumford
  • Yolanda Pena-Boquete

Abstract

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 whetheror not to diversify. We further find that short term concerns over job security or health are associated with less participation in, as well as a lower extent of, asset holding diversification

Suggested Citation

  • Francesco Mariotti & Karen Mumford & Yolanda Pena-Boquete, 2014. "Household Asset Holding Diversification in Australia," Discussion Papers 14/07, Department of Economics, University of York.
  • Handle: RePEc:yor:yorken:14/07
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    References listed on IDEAS

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    Cited by:

    1. Mariotti, Francesco & Mumford, Karen A. & Pena-Boquete, Yolanda, 2015. "Power-Couples and the Colocation Hypothesis Revisited," IZA Discussion Papers 9059, Institute for the Study of Labor (IZA).
    2. 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.

    More about this item

    Keywords

    asset allocation; asset diversification; household finance; Zero-Inflated Beta.;

    JEL classification:

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

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