How Do Households Allocate Their Assets? Stylized Facts from the Eurosystem Household Finance and Consumption Survey

Arrondel, Luc; Bartiloro, Laura; Fessler, Pirmin; Lindner, Peter; Mathä, Thomas Y.; Rampazzi, Cristiana; Savignac, Frédérique; Schmidt, Tobias; Schürz, Martin; Vermeulen, Philip

doi:10.2139/ssrn.2796992

Cited by 16 publications

(22 citation statements)

References 9 publications

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“…Similarly, Arrondel et al (2016) find that employment status, except self-employment, has little power for the asset participation decision in Euro area. Furthermore, we find statistically significant effects on the real asset ownership of household-level variables.…”

Section: The Probability Of Holding Real Asset Ownership Levels and S...mentioning

confidence: 87%

“…Household-level variables include household size, and dummies for: (i) being in the oversampled wealthy households, (ii) use of Islamic Banking services, and (iii) receiving inheritance. Since net wealth is endogenous by construction, we address this endogeneity by taking the household position in net wealth distribution --net wealth quintile dummies--as done in the literature (Arrondel et al, 2016). We similarly include household income quintile dummies in each regression.…”

Section: The Probability Of Holding Real Asset Ownership Levels and S...mentioning

confidence: 99%

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Household Portfolios in Turkey: Results from Household Finance and Consumption Survey *

Ceritoğlu

Cılasun

Kucukbayrak

et al. 2022

Preprint

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This paper analyzes the distribution of household portfolios in Turkey using a fresh data set, the Central Bank of the Republic of Turkey – Household Finance and Consumption Survey (CBRT-HFCS), which closes an important data gap by providing detailed data on households’ financial assets and liabilities. The empirical analysis concentrates on the motives behind household saving preferences and the distribution of household portfolios to financial instruments i.e. Turkish Lira and foreign currency denominated assets, gold, stocks and Individual Retirement Insurance funds. Moreover, the financial situation of households in Turkey is compared with selected European countries. We find that real assets and specifically housing wealth represents a larger share of total assets compared to financial assets in Turkey with respect to the Euro area. Another important finding is that the fraction of indebted households is higher, while households’ ability to save is significantly lower in Turkey. It is striking that the possibility of saving remains low even in the upper quintiles of household net wealth and income. Finally, the percentage of households with mortgage debt and the share of mortgage debt in total household liabilities are smaller in Turkey, suggesting that many households have to rely on their own funds or private loans to purchase homes. We can argue that households need to be encouraged to invest a larger share of their wealth in financial assets to raise household savings and to deepen financial markets in Turkey. JEL Classification: C21, D12, D14, D31

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Section: The Probability Of Holding Real Asset Ownership Levels and S...mentioning

confidence: 87%

Section: The Probability Of Holding Real Asset Ownership Levels and S...mentioning

confidence: 99%

Household Portfolios in Turkey: Results from Household Finance and Consumption Survey *

Ceritoğlu

Cılasun

Kucukbayrak

et al. 2022

Preprint

View full text Add to dashboard Cite

show abstract

“…At the end of 2019, households in Germany held financial assets worth of 6.46 billion euros, of which 23.2 percent are risky and the remaining 76.8 percent are safe, according to the distinction made (Deutsche Bundesbank, 2020). While almost all households own safe assets, 23.0 percent own risky assets, quite similar to the euro‐area average of 20.2 percent (see Arrondel et al ., 2016).…”

Section: Datamentioning

confidence: 99%

“…The more reluctant trading behavior of German relative to US investors may be influenced by low stock market participation in Germany and the small share of risky assets in Germans’ total financial wealth. If this portfolio structure is important, then results from Germany may apply to further continental European countries with similar portfolio characteristics (see Arrondel et al ., 2016).…”

Section: Introductionmentioning

confidence: 99%

Risky Asset Holdings During Covid‐19 and their Distributional Impact: Evidence from Germany

Menkhoff

Schröder

2021

Review of Income and Wealth

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We present evidence from a repeated survey on risky asset holdings carried out on a representative sample of the German population six times between April and June 2020. Given the size of the Covid-19 shock, we find little evidence of portfolio rebalancing in April 2020. In May, however, individual investors started buying heavily, parallel to market recovery. The cross-section shows large differences as young, educated, high income, and risk tolerant investors are net buyers throughout and, thus, benefit from the stock market recovery. Older individuals, parents of young children, and individuals affected by adverse liquidity shocks from Covid-19 are net sellers. Given the high risk of illness, older people are hit by dual blows to both health and finances.

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“…According to many studies (see e.g. Arrondel et al (2016), Causa et al (2019) and Cowell et al (2017) that examine the cross-country differences in the composition of household wealth, one's own residence is the key asset irrespective of the country. Moreover, as stated by Ronald et al (2017), "home has become even more central as an asset base of individual welfare since the global financial crisis."…”

Section: Related Literaturementioning

confidence: 99%

Mass homeownership policy and economic well-being of the elderly: empirical evidence from the Polish household survey

Marcinkiewicz

Chybalski

2021

IJSSP

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PurposeThe authors’ empirical investigation attempts to identify the nexus between the economic well-being of Polish elderly households and their housing situation, which can be related to the impact of the mass privatization policy implemented in Poland in the early 1990s. The generation who benefited from the process at that time currently includes great majority of people at retirement age who are homeowners.Design/methodology/approachIn the study, the authors employ micro data from the Polish Social Diagnosis household survey and analyze them in a multinomial logistic regression framework. They explore the nexus between both subjective and objective measures of income and housing circumstances.FindingsThe results imply that housing arrangements do not significantly differentiate Polish households in terms of their economic well-being when controlling for other sociodemographic factors. This may result from two independent, but possibly overlapping, reasons. The first is that housing circumstances are quite evenly distributed across elderly population as compared to income. This may be a direct effect of the “(socialist) state legacy,” as in the socialist era there was a strong focus on diminishing income and wealth inequalities in society. The second explanation is that better housing circumstances are not a sufficient means to improve the welfare of the elderly.Originality/valueThe study’s analysis is associated with little investigated area of the welfare effects of homeownership in the old age at the individual level. It explores this issue on the example of Poland, which is a typical representative of the group of post-socialist countries that share a common feature of “state legacy welfare” that is characterized by extensive mortgage-free homeownership.

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How Do Households Allocate Their Assets? Stylized Facts from the Eurosystem Household Finance and Consumption Survey

Cited by 16 publications

References 9 publications

Household Portfolios in Turkey: Results from Household Finance and Consumption Survey *

Household Portfolios in Turkey: Results from Household Finance and Consumption Survey *

Risky Asset Holdings During Covid‐19 and their Distributional Impact: Evidence from Germany

Mass homeownership policy and economic well-being of the elderly: empirical evidence from the Polish household survey

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