Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153789
Authors: 
Ramb, Fred
Scharnagl, Michael
Year of Publication: 
2011
Series/Report no.: 
ECB Working Paper 1355
Abstract: 
Based on a Financial Almost Ideal Demand System (FAIDS), this paper investigates the wealth structure of German households. The long-run wealth elasticities and interestrate elasticities were calculated using a unique new quarterly financial accounts macrodata set which covers the period from 1959 to 2009 and contains a portfolio of eight different financial assets. Descriptive analysis shows that all financial assets were characterized by substantial volatility of their weight in the portfolio of households. We found that portfolio shifts in the long run are determined significantly by changes in interest rates. The estimated model provides evidence that currency (and transferable deposits) is mainly a substitute for other assets and time deposits are typically a complement. Wealth elasticity is for most assets around unity.
Subjects: 
financial wealth
household
portfolio structure
JEL: 
E21
G11
C32
Document Type: 
Working Paper

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