 Financial Risk Taking and Differential Bargaining Power Within the HouseholdDimitris Christelis, Dimitris Georgarakos and Tullio Jappelli () CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy Abstract: Using survey data from a representative sample of Dutch households from 2002 to 2018, we examine whether inequality of amounts held in bank accounts within couples affects financial risk-taking. Using both ordinary least squares and panel data methods, we find that such inequality is associated with a reduced propensity to invest in stocks directly held and/or mutual funds. Specifically, an increase by 10 percentage points in the maximum share of bank account balances is associated with a drop in the probability to invest in risky financial assets by 1 percentage point. The results suggest that higher economic inequality between the two partners leads to a desire to de-risk the household’s financial portfolio. This in turn implies that in times of financial distress adverse economic outcomes that intensify within-household economic inequalities (such as job loss of one partner) could lead households to withdraw money from financial markets. Keywords: Financial Risk-Taking; Within-Couple Economic Inequality; Bargaining Power; Bank Accounts. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sef:csefwp:594 Access Statistics for this paper More papers in CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy Contact information at EDIRC. |
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