The Standard Portfolio Choice Problem in Germany

Steffen Huck, Tobias Schmidt and Georg Weizsäcker

No 650, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: We study behavior in an investment experiment conducted with a representative sample of German households (SOEP-IS). Respondents allocate a fixed budget between a safe asset and a risky asset whose returns are tied to the German stock market and earn monetary returns based on their decisions. Experimental investment choices correlate with beliefs about stock market returns and exhibit desirable external validity: They are a strong predictor for real-life stock market participation. The experimental set-up allows exogenous modification of the risky asset's return but investments are inelastic except for financially savvy subsamples. A laboratory experiment accompanies the data collection and yields similar results.

Keywords: Stock market expectations; stock market participation; portfolio choice; artefactual field experiment; SOEP (search for similar items in EconPapers)
JEL-codes: D1 D14 D84 G11 (search for similar items in EconPapers)
Pages: 27, 9 p.
Date: 2014
New Economics Papers: this item is included in nep-eur and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.diw.de/documents/publikationen/73/diw_01.c.466508.de/diw_sp0650.pdf (application/pdf)

Related works:
Journal Article: The Standard Portfolio Choice Problem in Germany (2021)
Journal Article: The Standard Portfolio Choice Problem in Germany (2021)
Working Paper: The Standard Portfolio Choice Problem in Germany (2019)
Working Paper: The Standard Portfolio Choice Problem in Germany (2015)
Working Paper: The standard portfolio choice problem in Germany (2014)
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:diw:diwsop:diw_sp650

Access Statistics for this paper

More papers in SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP) Contact information at EDIRC.
Bibliographic data for series maintained by Bibliothek (bibliothek@diw.de).