Consumer risk-taking and stock market investment: Insights using the CES’s consumer finance module

Dimitris Christelis, Dimitris Georgarakos, Tullio Jappelli () and Geoff Kenny

Research Bulletin, 2024, vol. 119

Abstract: Households’ willingness to take on risks has clear implications for the transmission of financial shocks, both in the long run and over the business cycle. This article introduces a newly published research dataset from the ECB’s Consumer Expectations Survey (CES) and summarises insights these data provide into household risk-taking. In particular, it examines how an increase in wealth affects a household’s decision on whether or not to invest in the stock market. The evidence suggests that all but the wealthiest households have a substantial aversion to investing in the stock market. Other reasons for avoiding stocks likely include information processing costs, as well as beliefs about stock prices, lack of trust, inertia and other behavioural biases. JEL Classification: D14, G11, G51

Keywords: Consumer Expectations Survey; Household finance; Risk taking; Stock Market Participation (search for similar items in EconPapers)
Date: 2024-05
Note: 483508
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ecb.europa.eu//press/research-publicat ... 7~1360f45ca6.en.html (text/html)
https://www.ecb.europa.eu//press/research-publicat ... 27~1360f45ca6.en.pdf (application/pdf)

Related works:
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:ecb:ecbrbu:2024:0119:

Access Statistics for this article

More articles in Research Bulletin from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().