BazEkon - The Main Library of the Cracow University of Economics

BazEkon home page

Main menu

Author
Cotwright Marty (University of Georgia, Athens, USA), Chatterjee Swarn (University of Georgia, Athens, USA)
Title
Equity Return Expectations and Financial Wealth Holdings of U.S. Households
Source
Open Economics, 2022, vol. 5, iss. 1, s. 1-10, tab., wykr., bibliogr. 45 poz.
Keyword
Oczekiwania, Rynek, Rynek akcji, Stopa zwrotu akcji, Zachowania finansowe, Zamożność społeczeństwa
Expectations, Market, Equity market, Stock rate of returns, Financial behaviour, Society affluence
Note
summ.
Abstract
The unique feature of the rural credit market in China is the dominance of zero collateral and zero-interest reciprocal lending and its long-term coexistence with the formal loan. This paper investigates the association between formal credit constraint and prevalence of reciprocal loans in rural China. Based on the identification of rural households' credit constraint status, we examine the effects of credit constraint on the utilization of informal reciprocal loans. We find that formal credit constraint significantly increases rural borrowers' reliance on reciprocal loans, whereas the "debt of gratitude" imposes an uncertain obligation on rural borrowers, and discourages them from borrowing amongst relatives and friends. (original abstract)
Full text
Show
Bibliography
Show
  1. Addoum, J. M. (2017). Household portfolio choice and retirement. Review of Economics and Statistics, 99(5), 870-883.
  2. Agarwal, S., Driscoll, J. C., Gabaix, X., & Laibson, D. (2009). The age of reason: Financial decisions over the life cycle and implications for regulation. Brookings Papers on Economic Activity, 2009(2), 51-117.
  3. Ameriks, J., & Zeldes, S. P. (2004). How do household portfolio shares vary with age (pp. 1-87). working paper, Columbia University.
  4. Arrondel, L., Calvo Pardo, H. F., & Tas, D. (2014). Subjective return expectations, information and stock market participation: evidence from France. Information and Stock Market Participation: Evidence from France (March 14, 2014).
  5. Arrow, K. J. (1965). Uncertainty and the welfare economics of medical care: reply (the implications of transaction costs and adjustment lags). The American economic review, 55(1/2), 154-158.
  6. Arthur, W. B. (2006). Out-of-equilibrium economics and agent-based modeling. Handbook of Computational Economics, 2, 1551-1564.
  7. Bogan, V. L., & Fertig, A. R. (2013). Portfolio choice and mental health. Review of Finance, 17(3), 955-992.
  8. Bucher-Koenen, T., Alessie, R. J., Lusardi, A., & Van Rooij, M. (2021). Fearless woman: Financial literacy and stock market participation (No. w28723). National Bureau of Economic Research.
  9. Chatterjee, S., Fan, L., Jacobs, B., & Haas, R. (2017). Risk tolerance and goals-based savings behavior of households: The role of financial literacy. Journal of Personal Finance, 16 (1), 66-77.
  10. Christelis, D., Jappelli, T., & Padula, M. (2010). Cognitive abilities and portfolio choice. European Economic Review, 54(1), 18-38.
  11. Christelis, D., Georgarakos, D., & Haliassos, M. (2011). Stockholding: Participation, location, and spillovers. Journal of Banking & Finance, 35(8), 1918-1930.
  12. Coibion, O., & Gorodnichenko, Y. (2015). Information rigidity and the expectations formation process: A simple framework and new facts. American Economic Review, 105(8), 2644-78.
  13. Coibion, O., Gorodnichenko, Y., & Kamdar, R. (2018). The formation of expectations, inflation, and the phillips curve. Journal of Economic Literature, 56(4), 1447-91.
  14. Curcuru, S., Heaton, J., Lucas, D., & Moore, D. (2010). Heterogeneity and portfolio choice: Theory and evidence. In Handbook of financial econometrics: Tools and techniques (pp. 337-382). North-Holland.
  15. D'Acunto, F., Hoang, D., Paloviita, M., & Weber, M. (2019). IQ, expectations, and choice (No. w25496). National Bureau of Economic Research.
  16. Damodaran, A. (2021, January). Historic Returns on Stocks, Bonds, and Bills: 1928-2020. http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html
  17. Dominitz, J., & Manski, C. F. (2007). Expected equity returns and portfolio choice: Evidence from the Health and Retirement Study. Journal of the European Economic Association, 5(2-3), 369-379.
  18. Fan, L., & Chatterjee, S. (2019). Bequest expectations among the US older adults: The roles of generational differences and personality traits. Financial Planning Review, 2(3-4), e1057.
  19. Fisher, P. J., & Yao, R. (2017). Gender differences in financial risk tolerance. Journal of Economic Psychology, 61, 191-202.
  20. Friedberg, L., & Webb, A. (2006). Determinants and consequences of bargaining power in households (No. w12367). National Bureau of Economic Research.
  21. Glaser, M., & Weber, M. (2005). September 11 and stock return expectations of individual investors. Review of Finance, 9(2), 243-279.
  22. Haliassos, M., & Bertaut, C. C. (1995). Why do so few hold stocks? The Economic Journal, 105(432), 1110-1129.
  23. Hanna, S. D., & Lindamood, S. (2008). The Decrease in Stock Ownership by Minority Households. Journal of Financial Counseling and Planning Volume, 19(2), 47.
  24. Hansen, T., Slagsvold, B., & Moum, T. (2008). Financial satisfaction in old age: A satisfaction paradox or a result of accumulated wealth?. Social Indicators Research, 89(2), 323-347.
  25. Health and Retirement Study (2017). Growing Older in America. National Institute of Aging, 1-102. https://www.nia.nih.gov/sites/default/files/2017-06/health_and_retirement_study_0.pdf
  26. Hogg, R. V., McKean, J., & Craig, A. T. (2005). Introduction to mathematical statistics. Pearson Education.
  27. Hoffmann, A. O., Post, T., & Pennings, J. M. (2013). Individual investor perceptions and behavior during the financial crisis. Journal of Banking & Finance, 37(1), 60-74.
  28. Hurd, M. D. (2009). Subjective probabilities in household surveys. Annu. Rev. Econ., 1(1), 543-562.
  29. Hurd, M., Van Rooij, M., & Winter, J. (2011). Stock market expectations of Dutch households. Journal of Applied Econometrics, 26(3), 416-436.
  30. Kim, E. J., Hanna, S. D., Chatterjee, S., & Lindamood, S. (2012). Who among the elderly owns stocks? The role of cognitive ability and bequest motive. Journal of Family and Economic Issues, 33(3), 338-352.
  31. Linnainmaa, J. T., Torous, W., & Yae, J. (2016). Reading the tea leaves: Model uncertainty, robust forecasts, and the autocorrelation of analysts' forecast errors. Journal of Financial Economics, 122(1), 42-64.
  32. Manski, C. F. (2004). Measuring expectations. Econometrica, 72(5), 1329-1376.
  33. Markowitz, H. M. (1991). Foundations of portfolio theory. The Journal of Finance, 46(2), 469-477.
  34. Merton, R. C. (1969). Lifetime portfolio selection under uncertainty: The continuous-time case. The Review of Economics and Statistics, 247-257.
  35. Pak, T. Y., & Chatterjee, S. (2016). Aging, overconfidence, and portfolio choice. Journal of Behavioral and Experimental Finance, 12, 112-122.
  36. Poterba, J., Venti, S., & Wise, D. A. (2018). Longitudinal determinants of end-of-life wealth inequality. Journal of Public Economics, 162, 78-88.
  37. Samuelson, P. A. (1969). Presidential Address The Way of an Economist. In International Economic Relations (pp. 1-11). Palgrave Macmillan, London.
  38. Schubert, R., Brown, M., Gysler, M., & Brachinger, H. W. (1999). Financial decision-making: are women really more risk-averse?. American economic review, 89(2), 381-385.
  39. Schroeder, D. H., & Salthouse, T. A. (2004). Age-related effects on cognition between 20 and 50 years of age. Personality and Individual Differences, 36(2), 393-404.
  40. Shiller, R. J. (2000). Measuring bubble expectations and investor confidence. The Journal of Psychology and Financial Markets, 1(1), 49-60.
  41. Shin, S. H., & Kim, K. T. (2018). Income uncertainty and household stock ownership during the great recession. Journal of Financial Counseling and Planning, 29(2), 383-395.
  42. Tobin, J. (1958). Estimation of relationships for limited dependent variables. Econometrica: journal of the Econometric Society, 26(1), 24-36.
  43. Van Rooij, M., Lusardi, A., & Alessie, R. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449-472.
  44. Vissing-Jørgensen, A. (2002). Limited asset market participation and the elasticity of intertemporal substitution. Journal of Political Economy, 110(4), 825-853.
  45. Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data. MIT press
Cited by
Show
ISSN
2451-3458
Language
eng
URI / DOI
http://dx.doi.org/10.1515/openec-2022-0118
Share on Facebook Share on Twitter Share on Google+ Share on Pinterest Share on LinkedIn Wyślij znajomemu