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dc.contributor.authorEl-Attar, Mayssunen_US
dc.contributor.authorPoschke, Markusen_US
dc.date.accessioned2011-06-21en_US
dc.date.accessioned2011-06-28T13:55:00Z-
dc.date.available2011-06-28T13:55:00Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/46085-
dc.description.abstractTrusting behavior has been shown to affect households' portfolio choice between risky and risk-free financial assets. We extend the analysis of the effect of trust on portfolio choice to include the dominant component of households' portfolios, real estate. In a simple model, we show how the effect of trust on expected investment returns affects portfolio composition, including the share of real estate. Using data from the European Social Survey, we estimate individual-level trust as an unobserved attitude using survey questions on personal attitudes by applying a hierarchical item response model. Combining these estimates with data on Spanish households' financial decisions from the Survey of Household Finances (EFF) conducted by the Bank of Spain, we show that households with less trust invest more in housing and less in financial assets, in particular risky ones. Trust thus may drive not only (limited) stock market participation, but financial development more generally.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5246en_US
dc.subject.jelD1en_US
dc.subject.jelD8en_US
dc.subject.jelZ1en_US
dc.subject.ddc330en_US
dc.subject.keywordhousingen_US
dc.subject.keywordtrusten_US
dc.subject.keywordportfolio choiceen_US
dc.subject.keyworditem response modelsen_US
dc.titleTrust and the choice between housing and financial assets: Evidence from Spanish householdsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn662517695en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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