Download now Free registration required
The authors study the portfolio allocation decisions of Australian households using the relatively new Household Income and Labor Dynamics in Australia (HILDA) survey. They focus on household allocations to risky financial assets. The empirical analysis considers a range of hypothesized determinants of these allocations. They find background risk factors posed by labor income uncertainty and health risk are important. Credit constraints and observed risk preferences play the expected role. A positive age gradient is identified for risky asset holdings and homeownership is associated with greater risky asset holdings.
- Format: PDF
- Size: 427.1 KB