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dc.contributor.authorChristelis, Dimitrisen_US
dc.contributor.authorGeorgarakos, Dimitrisen_US
dc.date.accessioned2010-03-29en_US
dc.date.accessioned2010-12-15T09:22:51Z-
dc.date.available2010-12-15T09:22:51Z-
dc.date.issued2009en_US
dc.identifier.piurn:nbn:de:hebis:30-73586-
dc.identifier.urihttp://hdl.handle.net/10419/43267-
dc.description.abstractWe investigate US households' direct investment in stocks, bonds and liquid accounts and their foreign counterparts, in order to identify the different participation hurdles affecting asset investment domestically and overseas. To this end, we estimate a trivariate probit model with three further selection equations that allows correlations among unobservables of all possible asset choices. Our results point to the existence of a second hurdle that stock owners need to overcome in order to invest in foreign stocks. Among stockholders, we show that economic resources, willingness to assume greater financial risks, shopping around for the best investment opportunities all increase the probability to invest in foreign stocks. Furthermore, we find that households who seek financial advice from relatives, friends and work contacts are less likely to invest in foreign stocks. This result corroborates the conjecture by Hong et al. (2004) that social interactions should discourage investment in foreign stocks, given their limited popularity. On the other hand, we find little evidence for additional pecuniary or informational costs associated with investment in foreign bonds and liquid accounts. Finally, we show that ignoring correlations of unobservables across different asset choices can lead to very misleading results.en_US
dc.language.isoengen_US
dc.publisherCenter for Financial Studies Frankfurt, Mainen_US
dc.relation.ispartofseriesCFS Working Paper 2009/28en_US
dc.subject.jelC35en_US
dc.subject.jelD14en_US
dc.subject.jelG11en_US
dc.subject.jelG35en_US
dc.subject.ddc330en_US
dc.subject.keywordForeign Assetsen_US
dc.subject.keywordHousehold Financeen_US
dc.subject.keywordStockholdingen_US
dc.subject.keywordMultivariate Probiten_US
dc.subject.keywordSimulated Maximum Likelihooden_US
dc.subject.keywordSelectionen_US
dc.subject.stwKapitalanlageen_US
dc.subject.stwPortfolio-Investitionen_US
dc.subject.stwPrivater Haushalten_US
dc.subject.stwAnlageverhaltenen_US
dc.subject.stwSchätzungen_US
dc.subject.stwUSAen_US
dc.titleInvesting at home and abroad: Different costs, different peopleen_US
dc.typeWorking Paperen_US
dc.identifier.ppn622759841en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:cfswop:200928-
Appears in Collections:CFS Working Paper Series, Universität Frankfurt a. M.

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