The determinants of household risky asset holdings: Australian evidence on background risk and other factors

Journal of Banking and Finance

Volumn 33, Issue 5, 2009, Pages 850-860

  Cardak, Buly A ^a   Wilkins, Roger ^b  

^a LA TROBE UNIVERSITY   (Australia)

^b UNIVERSITY OF MELBOURNE   (Australia)

Author keywords

Background risk; Credit constraints; Financial literacy; Household portfolios; Risky asset holdings

Indexed keywords

EID: 60749098432     PISSN: 03784266     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbankfin.2008.09.021     Document Type: Article

References (23)

1. Australian Bureau of Statistics (ABS), 2007. Employee earnings, benefits and trade union membership, Australia, August 2007. Catalogue Number 6310.0. ABS: Canberra.
2. Baptista A.M. Optimal delegated portfolio management with background risk. Journal of Banking and Finance 32 (2008) 977-985
3. Berkowitz M.K., and Qiu J. A further look at household portfolio choice and health status. Journal of Banking and Finance 30 (2006) 1201-1217
4. Bertaut C.C. Stockholding behavior of US households: evidence from the 1983-1989 survey of consumer finances. The Review of Economics and Statistics 80 (1998) 263-275
5. Bertaut C.C., and Starr-McCluer M. Household portfolios in the United States. In: Guiso L., Haliassos M., and Jappelli T. (Eds). Household Portfolios (2002), Cambridge, MIT Press
6. Campbell J.Y. Household finance. Journal of Finance 61 (2006) 1553-1604
7. Cardak, B.A., Wilkins, R.K., 2008. The determinants of household risky asset holdings: Australian evidence on background risk and other factors. Discussion paper A08.05, La Trobe University.
8. Fratantoni M.C. Homeownership and investment in risky assets. Journal of Urban Economics 44 (1998) 27-42
9. Fratantoni M.C. Homeownership, committed expenditure risk, and the stockholding puzzle. Oxford Economic Papers 53 (2001) 241-259
10. Guiso L., Jappelli T., and Terlizzese D. Income risk, borrowing constraints, and portfolio choice. American Economic Review 86 (1996) 158-172
11. Guiso L., Haliassos M., and Jappelli T. Introduction. In: Guiso L., Haliassos M., and Jappelli T. (Eds). Household Portfolios (2002), Cambridge, MIT Press
12. Haliassos M., and Bertaut C.C. Why do so few hold stocks?. Economic Journal 105 (1995) 1110-1129
13. Heaton J., and Lucas D. Market frictions, savings behaviour, and portfolio choice. Macroeconomic Dynamics 1 (1997) 76-101
14. Heaton J., and Lucas D. Portfolio choice in the presence of background risk. Economic Journal 110 (2000) 1-26
15. Heaton J., and Lucas D. Portfolio choice and asset prices: the importance of entrepreneurial risk. Journal of Finance 55 (2000) 1163-1198
16. Hochguertel S. Precautionary motives and portfolio decisions. Journal of Applied Econometrics 18 (2003) 61-77
17. Kimball, M.S., 1991. Precautionary motives for holding assets. Working Paper 3586, NBER.
18. King, M.A., Leape, J.I., 1987. Asset accumulation, information, and the life cycle. Working Paper 2392, NBER.
19. Normandin M., and St-Amour P. An empirical analysis of aggregate household portfolios. Journal of Banking and Finance 32 (2008) 1583-1597
20. Pratt J.W., and Zeckhauser R.J. Proper risk aversion. Econometrica 55 (1987) 143-154
21. Rosen H.S., and Wu S. Portfolio choice and health status. Journal of Financial Economics 72 (2004) 457-484
22. Shum P., and Faig M. What explains household stock holdings?. Journal of Banking and Finance 30 (2006) 2579-2597
23. Yamishita T. Owner-occupied housing and investment in stocks: An empirical test. Journal of Urban Economics 53 (2003) 220-237