Household Portfolios in the United States
Author : Carol Cutkosky Bertaut
Publisher :
Page : 47 pages
File Size : 37,49 MB
Release : 2000
Category : Households
ISBN :
Household Portfolios
Author : Luigi Guiso
Publisher : MIT Press
Page : 552 pages
File Size : 33,60 MB
Release : 2002
Category : Business & Economics
ISBN : 9780262072212
Book Description
Theoretical and empirical analysis of the structure of household portfolios.
Are United States household portfolios efficient?
Author : Whuei-wen Lai
Publisher :
Page : 0 pages
File Size : 48,70 MB
Release : 2003
Category :
ISBN :
Book Description
Household Portfolios
Author : Luigi Guiso
Publisher :
Page : 31 pages
File Size : 24,55 MB
Release : 2008
Category :
ISBN :
Book Description
This paper presents an overview of the main findings of an international project on Household Portfolios coordinated by the authors. Contributions to the project deal with the state of the art in analytical, computational, and econometric methods of analysis of household portfolio choice, identify stylized facts and trends observed in five major countries, and discuss issues relating to the portfolios of two important population groups, namely the elderly and the rich. In this paper, we integrate the main findings of the project, compare portfolio behavior across countries, and contrast theoretical predictions to empirical findings. This allows us to identify a number of stylized facts and portfolio puzzles that future theoretical and empirical research should attempt to analyze and resolve.
Trends in Household Portfolio Composition
Author : Jesse Bricker
Publisher :
Page : pages
File Size : 16,36 MB
Release : 2019
Category :
ISBN :
Book Description
We use data from the Federal Reserve Board's Survey of Consumer Finances (SCF) to explore how household asset portfolios in the United States evolved between 1989 and 2016. Throughout this period, two key assets - housing and financial market assets - drove the household balance sheet evolution; however, we find a great heterogeneity in the balance sheets that averages and aggregates conceal. We observe that ownership of assets has become more concentrated over time, and we show that nearly all of the time series variation in financial vulnerabilities in family balance sheets is due to middle-income families, who hold most of their assets in housing and are often the most highly leveraged income group in the housing market. Tracking the evolution of wealth over time among birth-year cohorts, we observe the standard life-cycle asset accumulation processes among low-, middle-, and high-income families.
Are U.S. Household Portfolios Efficient?
Author : Whuei-wen Lai
Publisher :
Page : pages
File Size : 30,98 MB
Release : 2003
Category : Portfolio management
ISBN :
Book Description
Abstract: The theoretical mean-variance efficient portfolio model was modified to incorporate human wealth and net primary residence. Eight traded assets were selected to represent the set of risky assets available to the household investors: combined stock index, large stocks, small stocks, the average return series for individual stocks in the CRSP Decile 10 (smallest) stock portfolio to proxy business ownership, corporate bonds, long-term government bonds, intermediate government bonds, and Ibbotson AssociateŁŒs real estate return series. Treasury bill represents the risk-free rate in this study. Simulation programs were developed to identify the efficient portfolios by finding the portfolio weights in risky assets that result in the minimum-variance frontier for the total portfolio. The results of the simulation programs give the efficient asset allocations to different household investors with different human wealth ratios, net primary residence ratios, and planned investment horizons, once the diversification of investment portfolios are related to the perceived stability of future employment income. The simulation results show that when rational household investors have a high human wealth ratio (e.g., those with ages between 30 to 40 years old), and a long investment time horizon (e.g., 15 year before their retirement), their efficient frontier is a combination of intermediate government bond, real estate, large stocks, small stocks and business ownership. People with high risk aversion should invest in intermediate government bonds and real estate for a 15-year horizon. People with low risk aversion should invest in real estate, small stock funds, and business ownership for a 15-year horizon. People who have risk aversion between these two points should choose a combination in the order of intermediate government bonds, real estate, large stocks, small stocks, and business ownership. The efficient portfolios from the simulation results are compared to the current portfolios of U.S. households estimated from the 1998 Survey of Consumer Finances. In the formal efficiency test of householdsŁŒ current portfolios, about one-third of total households hold inefficient mean-variance portfolios, compared with the same characteristics as those used to produce the simulation results in this study.
How Household Portfolios Evolve After Retirement
Author : Courtney Coile
Publisher :
Page : 34 pages
File Size : 48,3 MB
Release : 2006
Category : Older people
ISBN :
Book Description
In this paper, we study how the portfolios of elderly U.S. households evolve after retirement, using data from the Health and Retirement Study (HRS). In particular, we investigate the influence of aging and health shocks on a household's ownership of various assets and on the dollar value and share of total assets held in each asset class. We find that households decrease their ownership of most asset classes as they age, with the strongest evidence for principal residences and vehicles, while increasing the share of assets held in bank accounts and CDs. Consistent with prior studies, we find that the death of a spouse is a strong predictor of selling the principal residence. However, we find that widowhood also leads households to sell vehicles, businesses, and real estate and to put money into bank accounts and CDs, and further that other health shocks have very similar impacts. Finally, we explore why health shocks affect asset holdings and find that the effect of a shock is greatly magnified when households have physical or mental impairments. This suggests that factors other than standard risk and return considerations may weigh heavily in many older households' portfolio decisions.
What Happens to Household Portfolios After Retirement?
Author : Courtney Coile
Publisher :
Page : 0 pages
File Size : 10,88 MB
Release : 2010
Category :
ISBN :
Book Description
The typical older household in the United States now arrives at retirement with an array of financial resources. These resources usually include home equity, vehicles, and bank accounts and may also include financial assets such as Individual Retirement Accounts (IRAs) and stocks or other property like small businesses and real estate. These assets are important for the financial security of older households. Households may use them to finance routine consumption in retirement or reserve them to cope with the financial consequences of a negative event like the death of a spouse. Households' ability to manage their assets in retirement is becoming more important over time, as the shift towards defined contribution pension plans means that households are more likely to receive their pension as a stock of assets at retirement rather than as a flow of monthly benefits. Older households hold a sizeable share of total U.S. household net worth, so the spend-down patterns of these households may affect asset markets, particularly as the large baby boom cohort enters retirement.
International Perspectives on Household Wealth
Author : Edward N. Wolff
Publisher : Edward Elgar Publishing
Page : 461 pages
File Size : 14,83 MB
Release : 2006-01-01
Category : Political Science
ISBN : 1847203175
Book Description
Editor Wolff is a leading authority on income, wealth, and inequality in the US, and contributing authors are well-respected experts in their field. Overall, the research is high quality, and most papers include a substantial list of references. A plethora of data is considered, and much statistical evidence is presented. . . . A useful contribution to the literature on income distribution and wealth inequality. Recommended. E. Kacapyr, Choice The contributors to this comprehensive book compile and analyse the latest data available on household wealth using, as case studies, the United States, Canada, Germany, Italy, Sweden, and Finland during the 1990s and into the twenty-first century. The authors show that in the US, trends are highlighted in terms of wealth holdings, among the low-income population, along with changes in wealth polarization, racial differences in wealth holdings, and the dynamics of portfolio choices. The consensus between the authors is that wealth inequality has generally risen among these OECD countries since the early 1980s, although Germany stands out as an exception. In the case of the US, it is also noted that wealth holdings have generally failed to improve among low-income families and that the racial wealth gap widened during the late 1980s. International Perspectives on Household Wealth also contains new results on a number of topics, including measures and changes of wealth polarization in the US, measurement and changes of portfolio span in the US, asset holdings of low-income households in the US, and the effects of parental resources on asset holdings in Chile. Academic, government, and public policy economists in OECD countries, as well as those in so-called middle-income countries around the world, will find much to engage them within this book. It will also appeal to academics and researchers of international and welfare economics and other social scientists interested in the issue of inequality.
Household Portfolio Allocation Over the Life Cycle
Author : James M. Poterba
Publisher :
Page : 68 pages
File Size : 19,34 MB
Release : 1997
Category : Age groups
ISBN :
Book Description
In this paper, we analyze the relationship between age and portfolio structure for households in the US. We focus on both the probability that households of different ages own particular portfolio assets and the fraction of their net worth allocated to each asset category. We distinguish between age and cohort effects using data from the repeated cross-sections of the Federal Reserve Board's Surveys of Consumer Finances. We present two broad conclusions. First, there are important differences across asset classes in both the age-specific probabilities of asset ownership and in the portfolio shares of different assets at different ages. The notnion that all assets can be treated as identical from the standpoint of analyzing household wealth accumulation is not supported by the data. Institutional factors, asset liquidity, and evolving investor tastes must be recognized in modeling asset demand. These factors could affect analyses of overall household saving as well as the composition of this saving. Second, there are evident differences in the asset ownership probabilities of different birth cohorts. Currently, older households were more likely to hold corporate stock, and less likely to hold tax-exempt bonds, than younger households at any given age. These differences across cohorts are important to recognize when analyzing asset accumulation profiles.
