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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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    Cited by:

    1. Cardak, Buly A. & Martin, Vance L. & McAllister, Richard, 2019. "The effects of the Global Financial Crisis on the stock holding decisions of Australian households," The North American Journal of Economics and Finance, Elsevier, vol. 50(C).
    2. Mackenzie, Lesego & Mburu, John & Irungu, Patrick, 2017. "Analysis Of Household Choice And Determinants Of Livelihood Diversification Activities In Chobe District, Botswana," Dissertations and Theses 269268, University of Nairobi, Department of Agricultural Economics.
    3. Roger Wilkins, 2021. "Economic Wellbeing," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 469-481, December.
    4. Mariotti, Francesco & Mumford, Karen A. & Pena-Boquete, Yolanda, 2015. "Power-Couples and the Colocation Hypothesis Revisited," IZA Discussion Papers 9059, Institute of Labor Economics (IZA).
    5. Francesco Mariotti & Maria Dickson & Karen Mumford & Yolanda Pena-Boquete, 2016. "Job Insecurity Within the Household: Are Australian Householders Caring When it Comes to Risk Sharing?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 19(2), pages 77-90.
    6. 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.

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    More about this item

    Keywords

    asset allocation; asset diversification; household finance; Zero-Inflated Beta.;
    All these keywords.

    JEL classification:

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

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