Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/176703
Authors: 
Gábor-Tóth, Enikő
Georgarakos, Dimitris
Year of Publication: 
2018
Series/Report no.: 
CFS Working Paper Series 590
Abstract: 
Does economic policy uncertainty affect household stockholding? To answer this question we create a novel measure of household exposure to economic policy uncertainty news by combining survey information on the hours a household spends in reading newspapers and the frequency of such news in the popular press during a household's pre-interview period. After controlling for household fixed effects, month-year fixed effects and time-varying cognitive skills, we find that households with a higher exposure to economic policy uncertainty news are less likely to invest in stocks held directly or through mutual funds. This effect is independent from the market volatility index and household (first-moment) expectations about the stock market index.
Subjects: 
economic policy uncertainty
household finance
stockholding
text analysis
JEL: 
D14
D81
G11
Document Type: 
Working Paper

Files in This Item:
File
Size
516.36 kB





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