Preparing for the tax reform: the risky French households' portfolio in 2018

Luc Arrondel and Jerome Coffinet

PSE Working Papers from HAL

Abstract: Between 2004 and 2014, the number of shareholders in France fell by approximately 50%. The over-cautiousness of savers observed after the crisis now seems less topical, especially since 2017 was marked in France by a tax reform designed to support shareholding: the implementation of a flat tax and the abolition of wealth tax, replaced by property wealth tax. We therefore analyze the risky portfolios of French households from the last two waves (2014-2015 and 2017-2018) of the INSEE's "Life History and Wealth" survey, which have the advantage of being panelized. Although the 2017-2018 survey comes a little early to analyze the full impact of these reforms, this paper provides an original analysis of the dynamics of households' risky portfolios over the last three years, just before (and shortly after) the implementation of these policies. We show first that the demand for risky assets depends strongly on the level of household wealth and expectations of returns on the stock market, two variables that have likely been affected by the recent reforms. These data also make it possible to assess the extent to which the announcement of the recent tax reform has led to changes in securities holdings.

Keywords: Portfolio choice; Equity demand; Risk premium puzzle; Household finance (search for similar items in EconPapers)
Date: 2021-08
New Economics Papers: this item is included in nep-eur, nep-isf, nep-pbe and nep-pub
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03322577v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-03322577v1/document (application/pdf)

Related works:
Working Paper: Preparing for the tax reform: the risky French households' portfolio in 2018 (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:psewpa:halshs-03322577

Access Statistics for this paper

More papers in PSE Working Papers from HAL
Bibliographic data for series maintained by CCSD ().