Portfolio choice in the presence of nontradeable income: an experimental analysis

Alexander Klos and Martin Weber

No 04-01, Papers from Sonderforschungsbreich 504

Abstract: This paper reports the results of experiments on portfolio choice in the presence of nontradeable income. The nontradeable income part could either be riskless or risky (background risk). In many cases, we observe behavior which is qualitatively consistent with the predictions of normative theory. However, correlations between financial and nontradeable wealth are neglected. The computation of aggregated risk profiles helps subjects to partly overcome the deviations from normative theory due to neglect of correlations.

Keywords: portfolio choice; experimental economics; nontradeable income; background risk (search for similar items in EconPapers)
JEL-codes: G11 (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://madoc.bib.uni-mannheim.de/2743/1/dp04_01.pdf

Related works:
Journal Article: Portfolio Choice in the Presence of Non‐Tradable Income: An Experimental Analysis (2006)
Journal Article: Portfolio Choice in the Presence of Non-Tradable Income: An Experimental Analysis (2006)
Working Paper: Portfolio Choice in the Presence of Nontradeable Income: An Experimental Analysis (2004)
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:mnh:spaper:2743

Access Statistics for this paper

More papers in Papers from Sonderforschungsbreich 504 Contact information at EDIRC.
Bibliographic data for series maintained by Katharina Rautenberg ().