Being in the market': The UK house-price bubble and the intended structure of individual pension investment portfolios

Journal of Economic Geography

Volumn 10, Issue 3, 2010, Pages 331-359

  Clark, Gordon L ^a   Durán Fernández, Roberto ^a   Strauss, Kendra ^b  

^a UNIVERSITY OF OXFORD   (United Kingdom)

^b UNIVERSITY OF GLASGOW   (United Kingdom)

Author keywords

Behaviour; Financial markets; Housing bubble; Investment portfolios

Indexed keywords

ECONOMIC GEOGRAPHY; FINANCIAL MARKET; INVESTMENT; PENSION SYSTEM; RETIREMENT;

UNITED KINGDOM;

EID: 84859839086     PISSN: 14682702     EISSN: 14682710     Source Type: Journal    
DOI: 10.1093/jeg/lbp034     Document Type: Article

References (64)

1. Ainslie, G. (2001) Breakdown of Will. Cambridge: Cambridge University Press.
2. Arrow, K. J. (1986) Rationality of self and others in an economic system. Journal of Business, 59: S385-399.
3. Baron, J. (2008) Thinking and Deciding, 4th edn. Cambridge: Cambridge University Press.
4. Benartzi, S. and Thaler, R. (2001) Naive diversification strategies in defined contribution savings plans. American Economic Review, 91: 71-99.
5. Boyer, R. (2000) Is a finance-led growth regime a viable alternative to Fordism? A preliminary analysis. Economy and Society, 29: 111-145.
6. Christie, H., Smith, S. J., Munro, M. (2008) The emotional economy of housing. Environment and Planning A, 40: 2296-2312.
7. Clark, G. L. (forthcoming) Human nature, the environment, and behaviour: the scope and scale of financial decision-making. Geografiska Annaler B.
8. Clark, G. L. and Knox-Hayes, J. (2009) The new paternalism, consultation and consent: expectations of UK participants in defined contribution and self-directed retirement savings schemes. Pensions: An International Journal, 14: 58-74.
9. Clark, G. L., Knox-Hayes, J., Strauss, K. (forthcoming) Financial sophistication, salience and the scale of deliberation in UK retirement planning. Environment and Planning A.
10. Clark, G. L. and Monk, A. H. B. (2007) The "crisis" in defined benefit corporate pension liabilities Part I and Part II. Pensions: An International Journal, 12: 43-54, 68-81.
11. Clark, G. L. and Monk, A. H. B. (2008) Conceptualizing the defined benefit pension promise. Benefits Quarterly, 25: 7-18.
12. Clark, G. L. and Strauss, K. (2008) Pension-related individual risk propensity, and the effects of socio-demographic characteristics and a spousal pension entitlement. Ageing and Society, 28: 847-874.
13. Deaton, A. (1992) Understanding Consumption. Oxford: Oxford University Press.
14. Dickens, R. (2000) The evolution of individual male earnings in Great Britain: 1975-95. Economic Journal, 110: 27-49.
15. Dohmen, T., Falk, A., Huffman, D., Sunde, U., Schupp, J., Wagner, G. G. (2005) Individual risk attitudes: new evidence from a large, representative, experimentally-validated survey. Discussion Paper 1730, Bonn: Institute for the Study of Labor. Available online at: http://www.iza.org/en/webcontent/publications/papers/viewAbtsract?dp_id=1730 [Accessed 12 April 2009].
16. Dorn, D. and Huberman, G. (2005) Talk and action: what individual investors say and what they do. Review of Finance, 9: 437-481.
17. Engelen, E. (2003) The logic of funding European pension restructuring and the dangers of financialization. Environment and Planning A, 35: 1357-1372.
18. Gabaix, X., Laibson, D., Moloche, G., Weinberg, S. (2006) Costly information acquisition: experimental analysis of a boundedly rational model. American Economic Review, 96: 1043-1068.
19. Gertler, M. S. (2003) Tacit knowledge and the economic geography of context, or the undefinable tacitness of being (there). Journal of Economic Geography, 3: 75-99.
20. Goos, M. and Manning, A. (2007) Lousy and lovely jobs: the rising polarization of work in Britain. Review of Economics and Statistics, 89: 118-133.
21. Hamnett, C. (1999) Winners and Losers: Home Ownership in Modern Britain. London: Routledge.
22. Hamnett, C. (2009) Spatially displaced demand and the changing geography of house prices in London, 1995-2006. Housing Studies, 24: 301-320.
23. Hamnett, C. and Whitelegg, C. (2007) Loft conversion and gentrification in London: from industrial to post-industrial land use. Environment and Planning A, 39: 106-124.
24. Heaton, J. and Lucas, D. (2000) Portfolio choice in the presence of background risk. Economic Journal, 110: 1-26.
25. Hilton, D. J. (2003) Psychology and the financial markets: applications to understanding and remedying irrational decision-making. In I. Brocas and J. D. Carrillo (eds) The Psychology of Economic Decisions. Volume 1: Rationality and Well-Being, pp. 273-297. Oxford: Oxford University Press.
26. HM Government (2007) Homes for the Future: More Affordable, More Sustainable. Department for Communities and Local Government Cm 7191. London: The Stationary Office.
27. Kahneman, D. and Tversky, A. (1979) Prospect theory: an analysis of decisions under risk. Econometrica, 47: 263-291.
28. Kalwij, A. S. and Alessie, R. (2003) Permanent and transitory wage inequality of British men, 1975-2001: year, age and cohort effects. Available online at: http://ssrn.com/abstract=382780 [Accessed 12 April 2009].
29. Laibson, D. (2003) Golden eggs and hyperbolic discounting. Quarterly Journal of Economics, 62: 443-477.
30. Langley, P. (2008) The Everyday Life of Global Finance: Saving and Borrowing in Anglo-America. Oxford: Oxford University Press.
31. Leamer, E. (2007) Housing is the Business Cycle. Working Paper 13428. Cambridge MA: National Bureau of Economic Research.
32. Litterman, B. and the quantitative Resources Group (2003) Modern Investment Management. New York: Wiley.
33. Markowitz, H. M. (1952) Portfolio selection. Journal of Finance, 7: 77-91.
34. May, J., Wills, J., Datta, K., Evans, Y., Herbert, J., McIlwaine, C. (2007) Keeping London working: global cities, the British state and London's new migrant division of labour. Transactions, Institute of British Geographers, NS32: 151-167.
35. McDowell, L. (2008) Bodies out of place: unruly female bodies in professional occupations and trans-national body shopping. Mimeo. Oxford: Oxford University Centre for the Environment.
36. McDowell, L., Batnitzky, A., Dyer, S. (2008) Internationalizion and the spaces of temporary labour: the global assembly of a local workforce. British Journal of Industrial Relations, 46: 750-770.
37. McDowell, L., Batnitzky, A., Dyer, S. (2009) Precarious work and economic migration: emerging immigrant divisions of labour in Greater London's service sector. International Journal of Urban and Regional Research, 33: 3-25.
38. Merton, R. C. (1969) Lifetime portfolio selection under uncertainty: the continuous-time case. Review of Economics and Statistics, 51: 247-257.
39. Mullainathan, S. (2007) Psychology and economic development. In P. Diamond and H. Vartiainen (eds) Behavioral Economics and its Applications, pp. 85-113. Princeton: Princeton University Press.
40. National Audit Office (2009) The Nationalisation of Northern Rock. London: HM Treasury.
41. Nickell, S. (2005) Practical issues in United Kingdom monetary policy, 2000-2005. Proceedings of the British Academy, 139: 1-33.
42. O'Donoghue, T. and Rabin, M. (1999) Doing it now or later. American Economic Review, 89: 103-124.
43. Preda, A. (2004) The investor as a cultural figure of global capitalism. In K. Knorr Cetina and A. Preda (eds) The Sociology of Financial Markets, pp. 141-162. Oxford: Oxford University Press.
44. PricewaterhouseCoopers (2006) Modelling UK house price uncertainty. Economic Outlook, November, 16-23.
45. Roberts, J. (2004) The Modern Firm: Organisational Design for Performance and Growth. Oxford: Oxford University Press.
46. Roy, A. D. (1950) Safety first and the holding of financial assets. Econometrica, 20: 431-449.
47. Samuelson, P. A. (1969) Lifetime portfolio selection by dynamic stochastic programming. Review of Economics and Statistics, 51: 239-246.
48. Sharpe, W. F. (2007) Investors and Markets: Portfolio Choices, Asset Prices, and Investment Advice. Princeton: Princeton University Press.
49. Shiller, R. J. (1993) Macro Markets: Creating Institutions for Managing Society's Largest Economic Risks. Oxford: Oxford University Press.
50. Shiller, R. J. (2000) Irrational Exuberance. Princeton: Princeton University Press.
51. Shiller, R. J. (2007) Understanding recent trends in house prices and home ownership. Working Paper 13553. Cambridge MA: National Bureau of Economic Research.
52. Shiller, R. J. (2008) The Subprime Solution: How Today's Global Financial Crisis Happened and What to Do About It. Princeton: Princeton University Press.
53. Simon, H. A. (1956) Rational choice and the structure of the environment. Psychological Review, 63: 129-138.
54. Shleifer, A. (2000) Market Inefficiency. Oxford: Oxford University Press.
55. Smith, S. J. (2005) States, markets and an ethic of care. Political Geography, 24: 1-20.
56. Smith, S. J. (2008) Owner-occupation: at home with a hybrid of money and materials. Environment and Planning A, 40: 520-535.
57. Smith, S. J., Munro, M., Christie, H. (2006) Performing (housing) markets. Urban Studies, 43: 81-98.
58. Strauss, K. (2008) Banking on property for retirement? Attitudes to housing wealth and pensions. Unpublished working paper, Department of Geography, University of Oxford.
59. Strauss, K. (2009) Cognition, context, and multi-method approaches to economic decision making. Environment and Planning A, 41: 302-317.
60. Sunley, P. (2000) Pension exclusion in grey capitalism: mapping the pensions gap in Britain. Transactions, Institute of British Geographers, 25: 483-501.
61. Taylor, J. B. (2009) Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis. Stanford: Hoover Institution.
62. Teece, D. (2000) Managing Intellectual Capital. Oxford: Oxford University Press.
63. Watson, J. and McNaughton, M. (2007) Gender differences in risk aversion and expected retirement benefits. Financial Analysts Journal, 63: 52-62.
64. West, R. R., McNabb, R. M., Thompson, A. G. H., Sheldon, T. A., Grimley-Evans, J. (2003) Estimating implied rates of discount in healthcare decision-making. Health Technology Assessment Database, vol. 7, no. 38. Available online at: www.mrw.interscience.eiley.com/cochrane/c/hta/HTA-32003001204/frame.html.