Risk management, housing and stockholding

Luc Arrondel and Frédérique Savignac

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Abstract: This article investigates the possible explanations of the stockholding puzzle by focusing on housing and other uninsurable risks (associated with income, health and business). Taking the French household wealth survey (Patrimoine 2004, French National Statistical Institute), we find that the share of financial wealth invested in stocks depends on transaction and information costs, risk aversion, exposure to real estate risk and, to a lesser extent, labour market risk. These results are obtained by controlling for endogenous home ownership status.

Keywords: portfolio choice; background risks; housing demand; life-cycle model (search for similar items in EconPapers)
Date: 2015-07
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Citations: View citations in EconPapers (3)

Published in Applied Economics, 2015, 47 (39), pp.4208-4227

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Journal Article: Risk management, housing and stockholding (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:halshs-01203114

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