Arbeitspapier
Financial risk aversion and household asset diversification
This paper explores the relationship between risk attitude and asset diversification in household portfolios. We first examine the impact of manifested risk aversion on the total number of distinct assets held in a portfolio (naive diversification). The second part of the paper focuses on a more sophisticated strategy of diversification and asks whether financial theory is compatible with observed diversification patterns. Based on the German Socioeconomic Panel which provides unique measures of individual propensity for taking risk, the results of the regression analysis show that, along with some socioeconomic characteristics, the propensity for taking investment risk is an important predictor of a household's diversification strategy. However, some of our findings are strongly at odds with what the concept of mean-variance utility suggests.
- Sprache
-
Englisch
- Erschienen in
-
Series: DIW Discussion Papers ; No. 807
- Klassifikation
-
Wirtschaft
Household Saving; Personal Finance
Portfolio Choice; Investment Decisions
- Thema
-
household finances
diversification
financial portfolio
Privater Haushalt
Anlageverhalten
Portfolio-Management
Risikoaversion
Deutschland
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Barasinska, Nataliya
Schäfer, Dorothea
Stephan, Andreas
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsches Institut für Wirtschaftsforschung (DIW)
- (wo)
-
Berlin
- (wann)
-
2008
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Barasinska, Nataliya
- Schäfer, Dorothea
- Stephan, Andreas
- Deutsches Institut für Wirtschaftsforschung (DIW)
Entstanden
- 2008
Ähnliche Objekte (12)
Financial Risk Aversion and Household Asset Diversification
Financial risk aversion and household asset diversification
Private Households Display Strong Aversion to Investment Risk
Innovation and Investment Funding in the Post-Crisis Period: Have Financing Patterns and Financial Constraints of German Firms Changed?
Family ownership : does it matter for funding and success of corporate innovations?
Financial Constraints of Firms with Environmental Innovation
The cost channel effect of monetary transmission: How effective is the ECB's low interest rate policy for increasing inflation?
The impact of institutions on bank governance and stability: Evidence from African countries
Hohe Risikoaversion privater Haushalte bei Geldanlagen
Niedriger Leitzins: Eine Chance in der Euro-Schuldenkrise
Innovation capabilities and financing constraints of family firms
Legal history, institutions and banking system development in Africa
Financial Risk Aversion and Household Asset Diversification
Financial risk aversion and household asset diversification
Private Households Display Strong Aversion to Investment Risk
Innovation and Investment Funding in the Post-Crisis Period: Have Financing Patterns and Financial Constraints of German Firms Changed?
Family ownership : does it matter for funding and success of corporate innovations?
Financial Constraints of Firms with Environmental Innovation
The cost channel effect of monetary transmission: How effective is the ECB's low interest rate policy for increasing inflation?
The impact of institutions on bank governance and stability: Evidence from African countries
Hohe Risikoaversion privater Haushalte bei Geldanlagen
Niedriger Leitzins: Eine Chance in der Euro-Schuldenkrise
Innovation capabilities and financing constraints of family firms
Legal history, institutions and banking system development in Africa
Financial Risk Aversion and Household Asset Diversification
Financial risk aversion and household asset diversification
Private Households Display Strong Aversion to Investment Risk
Innovation and Investment Funding in the Post-Crisis Period: Have Financing Patterns and Financial Constraints of German Firms Changed?
Family ownership : does it matter for funding and success of corporate innovations?
Financial Constraints of Firms with Environmental Innovation
The cost channel effect of monetary transmission: How effective is the ECB's low interest rate policy for increasing inflation?
The impact of institutions on bank governance and stability: Evidence from African countries
Hohe Risikoaversion privater Haushalte bei Geldanlagen
Niedriger Leitzins: Eine Chance in der Euro-Schuldenkrise
Innovation capabilities and financing constraints of family firms