Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/295167 
Year of Publication: 
2024
Series/Report no.: 
DIW Discussion Papers No. 2078
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
The low degree of stock market participation (SMP) is one of the big puzzles in finance. Numerous determinants have been proposed. We put these determinants into a structure that is derived from a standard static portfolio model. Then we discuss arguments put forward regarding specific SMP determinants and the empirical evidence that has been provided. The focus of our survey is on the identification of a causal impact of determinants on SMP via shocks. We summarize the evidence by suggesting established and likely SMP determinants and providing an outlook for future research and policy.
Subjects: 
stock market participation
transaction costs
information
return volatility
risk tolerance
JEL: 
G11
G51
Document Type: 
Working Paper

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