EconPapers    
Economics at your fingertips  
 

Participation Following Sudden Access

Fuchs-Schündeln, Nicola and Michael Haliassos ()

No 13596, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper employs the German reunification "experiment" to study how sudden access to previously unavailable financial products, supported by knowledgeable practitioners, influences participation. Findings provide new perspectives on participation and inertia. Controlling for characteristics, East Germans experienced a jump in securities participation to a level comparable to West Germans' participation immediately following reunification, and to an even higher level for consumer debt, while exhibiting inertia in previously accessible products. They showed no signs of subsequent retreat. Lower financial resources are the most important characteristic explaining lower East German participations in all asset classes, while expectations and peer effects are important drivers of the high East German debt participation. Average income among the new peers has had larger effects on East than on West German participation in both securities and consumer debt.

Keywords: asset market access; Consumer credit; German reunification; Household Debt; household finance; Social interactions; Stockholding (search for similar items in EconPapers)
JEL-codes: E21 G11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Date: 2019-03
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=13596 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

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:cpr:ceprdp:13596

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=13596

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2019-10-13
Handle: RePEc:cpr:ceprdp:13596