Artikel

The Standard Portfolio Choice Problem in Germany

We study an investment experiment with a representative sample of German households. Respondents invest in a safe asset and a risky asset whose return is tied to the German stock market. Experimental investments correlate with beliefs about stock market returns and exhibit desirable external validity at least in one respect: they predict real-life stock market participation. But many households are unresponsive to an exogenous increase in the risky asset’s return. The data analysis and a series of additional laboratory experiments suggest that task complexity decreases the responsiveness to incentives. Modifying the safe asset’s return has a larger effect on behaviour than modifying the risky asset’s return.

Language
Englisch

Bibliographic citation
Journal: The Economic Journal ; ISSN: 1468-0297 ; Volume: 131 ; Year: 2021 ; Issue: 638 ; Pages: 2413–2446- ; Oxford: Oxford University Press

Classification
Sozialwissenschaften, Soziologie, Anthropologie
Household Saving; Personal Finance
Expectations; Speculations
Portfolio Choice; Investment Decisions
Subject
stock market expectations
stock market participation
portfolio choice
financial literacy
complexity

Event
Geistige Schöpfung
(who)
Breunig, Christoph
Huck, Steffen
Schmidt, Tobias
Weizsäcker, Georg
Event
Veröffentlichung
(who)
Oxford University Press
ZBW - Leibniz Information Centre for Economics
(where)
Oxford
(when)
2021

DOI
doi:10.1093/ej/ueab006
Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Breunig, Christoph
  • Huck, Steffen
  • Schmidt, Tobias
  • Weizsäcker, Georg
  • Oxford University Press
  • ZBW - Leibniz Information Centre for Economics

Time of origin

  • 2021

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