EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/26250
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorBecker, Sascha O.en_US
dc.contributor.authorHoffmann, Mathiasen_US
dc.date.accessioned2008-02-14en_US
dc.date.accessioned2009-07-28T08:29:34Z-
dc.date.available2009-07-28T08:29:34Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/26250-
dc.description.abstractWe explore the link between portfolio home bias and consumption risk sharing among Italian regions using aggregated household level information on consumption, income and portfolio holdings. We propose to use data on equity fund ownership to proxy for regional home bias: equity funds are typically diversified at the national or international level and will therefore provide interregional diversification. In assessing the impact of equity fund ownership on interregional risk sharing we distinguish between two dimensions: variation in the share of equity funds in fund-holder's wealth (the intensive margin) and variation in the fraction of households that hold funds (the extensive margin). We find that equity fund ownership is an important determinant of interregional risk sharing. First, diversification incentives qualitatively line up with actually observed portfolio choices: fund holders in regions where households are particularly exposed to region-specific labor income risk hold a larger fraction of their wealth in (out-of-region) funds. Secondly, for a region as a whole, risk sharing increases in both the intensive and the extensive margins of diversification and the two margins reinforce each other. The marginal effect of wider equity fund participation seems particularly strong, suggesting that policies aimed at increasing equity market participation could help foster better interregional risk sharing.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper 2205en_US
dc.subject.jelF36en_US
dc.subject.jelF37en_US
dc.subject.jelG1en_US
dc.subject.ddc330en_US
dc.subject.keywordconsumption risk sharingen_US
dc.subject.keywordregional home biasen_US
dc.subject.keywordsurvey of household income and wealthen_US
dc.subject.keywordlabor income risken_US
dc.subject.keywordportfolio choiceen_US
dc.subject.keywordstock market participationen_US
dc.subject.stwPortfolio-Managementen_US
dc.subject.stwPrivater Haushalten_US
dc.subject.stwKapitalanlageen_US
dc.subject.stwAktienfondsen_US
dc.subject.stwHaushaltseinkommenen_US
dc.subject.stwRisikopräferenzen_US
dc.subject.stwRäumliche Verteilungen_US
dc.subject.stwSchätzungen_US
dc.subject.stwItalienen_US
dc.titleEquity fund ownership and the cross-regional diversification of household risken_US
dc.typeWorking Paperen_US
dc.identifier.ppn558352251en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
558352251.PDF445.16 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.