Economic integration and mature portfolios

  • This paper documents and studies sources of international differences in participation and holdings in stocks, private businesses, and homes among households aged 50+ in the US, England, and eleven continental European countries, using new internationally comparable, household-level data. With greater integration of asset and labor markets and policies, households of given characteristics should be holding more similar portfolios for old age. We decompose observed differences across the Atlantic, within the US, and within Europe into those arising from differences: a) in the distribution of characteristics and b) in the influence of given characteristics. We find that US households are generally more likely to own these assets than their European counterparts. However, European asset owners tend to hold smaller real, PPP-adjusted amounts in stocks and larger in private businesses and primary residence than US owners at comparable points in the distribution of holdings, even controlling for differences in configuration of characteristics. Differences in characteristics often play minimal or no role. Differences in market conditions are much more pronounced among European countries than among US regions, suggesting significant potential for further integration.

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Metadaten
Author:Dimitris Christelis, Dimitris Georgarakos, Michael HaliassosORCiDGND
URN:urn:nbn:de:hebis:30-53229
Parent Title (German):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2008,05
Series (Serial Number):CFS working paper series (2008, 05)
Document Type:Working Paper
Language:English
Year of Completion:2008
Year of first Publication:2008
Publishing Institution:Universit├Ątsbibliothek Johann Christian Senckenberg
Release Date:2008/03/03
Tag:Aging; Counterfactual Decompositions; Household Portfolios; Housing; Integration; Private Business; Quantile Regression; Stockholding
GND Keyword:Haushalt; Erwachsener, 50-65 Jahre; Aktienanlage; Unbewegliche Sache
Issue:January 31, 2008
Page Number:56
HeBIS-PPN:195433955
Institutes:Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):License LogoDeutsches Urheberrecht