Temperance in stock market participation: evidence from France
Arrondel, Luc, Calvo Pardo, Hector and Oliver, Xisco (2010) Temperance in stock market participation: evidence from France. Economica, 77, (306), 314-333. (doi:10.1111/j.1468-0335.2008.00733.x).
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We explore empirically whether earnings uncertainty and borrowing constraints deter households from the stock market, consistent with the predictions of theoretical studies of portfolio choice in the presence of uninsurable earnings. Since recent extensions highlight the importance of the correlation between earnings and financial risks, here we use a self-assessed proxy from the DELTA-TNS 2002 cross-sectional survey to empirically assess the impact. Although income risk does not affect the participation decision of households' reporting a negative correlation, it does lower the participation of those who report a non-negative sign, consistent with economic theory predictions.
|Digital Object Identifier (DOI):||doi:10.1111/j.1468-0335.2008.00733.x|
|Subjects:||H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
|Divisions :||University Structure - Pre August 2011 > School of Social Sciences > Economics
|Accepted Date and Publication Date:||
|Date Deposited:||09 Feb 2009|
|Last Modified:||31 Mar 2016 12:50|
|RDF:||RDF+N-Triples, RDF+N3, RDF+XML, Browse.|
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