Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/26250 
Full metadata record
Appears in Collections:
DC FieldValueLanguage
dc.contributor.authorBecker, Sascha O.en
dc.contributor.authorHoffmann, Mathiasen
dc.date.accessioned2008-02-14-
dc.date.accessioned2009-07-28T08:29:34Z-
dc.date.available2009-07-28T08:29:34Z-
dc.date.issued2008-
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
dc.language.isoengen
dc.publisher|aCenter for Economic Studies and ifo Institute (CESifo) |cMunichen
dc.relation.ispartofseries|aCESifo Working Paper |x2205en
dc.subject.jelF36en
dc.subject.jelF37en
dc.subject.jelG1en
dc.subject.ddc330en
dc.subject.keywordconsumption risk sharingen
dc.subject.keywordregional home biasen
dc.subject.keywordsurvey of household income and wealthen
dc.subject.keywordlabor income risken
dc.subject.keywordportfolio choiceen
dc.subject.keywordstock market participationen
dc.subject.stwPortfolio-Managementen
dc.subject.stwPrivater Haushalten
dc.subject.stwKapitalanlageen
dc.subject.stwAktienfondsen
dc.subject.stwHaushaltseinkommenen
dc.subject.stwRisikopräferenzen
dc.subject.stwRäumliche Verteilungen
dc.subject.stwSchätzungen
dc.subject.stwItalienen
dc.titleEquity fund ownership and the cross-regional diversification of household risk-
dc.typeWorking Paperen
dc.identifier.ppn558352251en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

Files in This Item:
File
Size
445.16 kB





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