Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Expected Horizon and Household Finance

Abstract : Using data from a U.S. household survey, we examine the empirical relation between subjective life horizon (i.e., the self-reported expectation of remaining life span) and portfolio choice. We find that equity portfolio shares are higher for investors with longer horizons, controlling for gender-specific age effects, socio-economic characteristics, health, and optimism. Our result is robust to accounting for the endogeneity of equity market participation or instrumenting subjective life horizon with parental survival. Finally, we show that the effect of a shortening horizon on portfolio allocation is stronger for households without bequest motives.
Document type :
Preprints, Working Papers, ...
Complete list of metadatas

https://hal-hec.archives-ouvertes.fr/hal-02002787
Contributor : Antoine Haldemann <>
Submitted on : Thursday, January 31, 2019 - 8:31:21 PM
Last modification on : Friday, February 1, 2019 - 1:24:33 AM

Licence


Copyright

Identifiers

  • HAL Id : hal-02002787, version 1

Collections

Citation

Christophe Spaenjers, Sven Michael Spira. Expected Horizon and Household Finance. 2013. ⟨hal-02002787⟩

Share

Metrics

Record views

55