EconPapers    
Economics at your fingertips  
 

Measuring the Financial Sophistication of Households

Laurent Calvet (), John Campbell () and Paolo Sodini

Post-Print from HAL

Abstract: This paper constructs an index of financial sophistication that, in comprehensive data on Swedish households, best explains a set of three investment mistakes: underdiversification, risky share inertia, and the tendency to sell winning stocks and hold losing stocks (the disposition effect). The index of financial sophistication increases strongly with financial wealth and household size, and to a lesser extent with education and proxies for financial experience. The index is strongly positively correlated with the share of risky assets held by a household.

Keywords: Households; Financial Sophistication (search for similar items in EconPapers)
Date: 2009-05
Note: View the original document on HAL open archive server: https://hal-hec.archives-ouvertes.fr/hal-00459687
References: Add references at CitEc
Citations: View citations in EconPapers (61) Track citations by RSS feed

Published in American Economic Review, American Economic Association, 2009, Vol.99,n°2, pp.393-398. 〈10.1257/aer.99.2.393〉

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Measuring the Financial Sophistication of Households (2009) Downloads
Working Paper: Measuring the Financial Sophistication of Households (2009) Downloads
Working Paper: Measuring the Financial Sophistication of Households (2009) Downloads
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:hal:journl:hal-00459687

DOI: 10.1257/aer.99.2.393

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2019-07-22
Handle: RePEc:hal:journl:hal-00459687