 The Standard Portfolio Choice Problem in GermanyChristoph Breunig, Steffen Huck, Tobias Schmidt and Georg Weizsäcker The Economic Journal, 2021, vol. 131, issue 638, 2413-2446 Abstract: We study an investment experiment with a representative sample of German households. Respondents invest in a safe asset and a risky asset whose return is tied to the German stock market. Experimental investments correlate with beliefs about stock market returns and exhibit desirable external validity at least in one respect: they predict real-life stock market participation. But many households are unresponsive to an exogenous increase in the risky asset’s return. The data analysis and a series of additional laboratory experiments suggest that task complexity decreases the responsiveness to incentives. Modifying the safe asset’s return has a larger effect on behaviour than modifying the risky asset’s return. Date: 2021 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oup:econjl:v:131:y:2021:i:638:p:2413-2446. Ordering information: This journal article can be ordered from Access Statistics for this article The Economic Journal is currently edited by Francesco Lippi More articles in The Economic Journal from Royal Economic Society Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.