Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/218961 
Year of Publication: 
2020
Series/Report no.: 
SAFE Working Paper No. 279
Publisher: 
Leibniz Institute for Financial Research SAFE, Frankfurt a. M.
Abstract: 
We survey a representative sample of US households to study how exposure to the COVID-19 stock market crash affects expectations and planned behavior. Wealth shocks are associated with upward adjustments of expectations about retirement age, desired working hours, and household debt, but have only small effects on expected spending. We provide correlational and experimental evidence that beliefs about the duration of the stock market recovery shape households' expectations about their own wealth and their planned investment decisions and labor market activity. Our findings shed light on the implications of household exposure to stock market crashes for expectation formation.
Subjects: 
Coronavirus
Stockholding
Wealth shocks
Expectation formation
Inequality
JEL: 
D14
D31
D83
D84
D91
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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