Temperance in Stock Market Participation: Evidence from France - Paris-Jourdan Sciences Économiques Access content directly
Journal Articles Economica Year : 2010

Temperance in Stock Market Participation: Evidence from France

Abstract

We explore empirically whether earnings uncertainty and borrowing constraints deter households from the stock market, consistent with the predictions of theoretical studies of portfolio choice in the presence of uninsurable earnings. Since recent extensions highlight the importance of the correlation between earnings and financial risks, here we use a self-assessed proxy from the DELTA-TNS 2002 cross-sectional survey to empirically assess the impact. Although income risk does not affect the participation decision of households' reporting a negative correlation, it does lower the participation of those who report a non-negative sign, consistent with economic theory predictions.

Dates and versions

halshs-00754419 , version 1 (20-11-2012)

Identifiers

Cite

Luc Arrondel, Hector Calvo Pardo, Xisco Oliver. Temperance in Stock Market Participation: Evidence from France. Economica, 2010, 77 (306), pp.314-333. ⟨10.1111/j.1468-0335.2008.00733.x⟩. ⟨halshs-00754419⟩
132 View
0 Download

Altmetric

Share

Gmail Facebook X LinkedIn More