Stock Market Expectations of Dutch Households

Michael Hurd (), Maarten van Rooij and Joachim Winter ()

No 16464, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Despite its importance for the analysis of life-cycle behavior, stock ownership by households is poorly understood. Among other approaches to the investigation of this puzzle, recent research has elicited the expectations of stock market returns by individuals. This paper reports findings from a study that collected data over a two-year period both on stock market expectations (subjective probabilities of gains or losses) and on stock ownership. On average stock market expectations are much more pessimistic about gains than the historical record of actual gains. Expectations are heterogeneous, and they are correlated with stock ownership. Over the two years of our data, stock market prices increased, and expectations of future stock market price changes also increased, lending support to the view that expectations are influenced by recent stock gains or losses.

JEL-codes: C42 D12 D84 G11 (search for similar items in EconPapers)
Date: 2010-10
Note: AG
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published as Michael Hurd & Maarten Van Rooij & Joachim Winter, 2011. "Stock market expectations of Dutch households," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(3), pages 416-436, 04.

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Related works:
Journal Article: Stock market expectations of Dutch households (2011)
Working Paper: Stock market expectations of dutch households (2011)
Working Paper: Stock Market Expectations of Dutch Households (2010)
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