Household Asset Holding Diversification in Australia

Francesco Mariotti, Karen Mumford (karen.mumford@york.ac.uk) and Yolanda Pena-Boquete (y.penaboquete@uvigo.es)
Additional contact information
Francesco Mariotti: University College London

No 8302, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We explore asset holding diversification by Australian households, in particular, the household asset diversification participation decision (whether or not to diversify at all) is jointly estimated with the decision of how much to diversify. In so doing, recent literature on the modelling of proportions is combined with the growing body of research concerning household financial decision making. Our findings are consistent with the participation of households operating in diverse financial markets being constrained by ineffective information conduits, influencing the decision of whether or not to diversify. We further find that short term concerns over job security or health are associated with less participation in, as well as a lower extent of, asset holding diversification.

Keywords: Zero-Inflated Beta; job insecurity; asset allocation; asset diversification; household finance; employment (search for similar items in EconPapers)
JEL-codes: J3 J7 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2014-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published in: Australian Economic Review, 2015, 48(1), 43-64

Downloads: (external link)
https://docs.iza.org/dp8302.pdf (application/pdf)

Related works:
Journal Article: Household Asset-Holding Diversification in Australia (2015)
Working Paper: Household Asset Holding Diversification in Australia (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:iza:izadps:dp8302

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
library@iza.org

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte (hinte@iza.org).