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Household Portfolios (MIT Press)

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Description

Theoretical and empirical analysis of the structure of household portfolios.

Until recently, researchers in economics and finance paid reasonably little attention to household portfolios. Reasons included the tendency of most households to hold simple portfolios, the inability of the dominant asset pricing models to account for household portfolio incompleteness, and the lack of detailed databases on household portfolios in many countries until the late 1980s or 1990s. Now, on the other hand, the analysis of household portfolios is emerging as a field of energetic study.

The eleven chapters in this collection provide an overview of current theoretical knowledge about the structure of household portfolios and compare predictions with empirical findings. The book describes the cutting-edge tools of analytical, computational, and econometric investigation, in addition to probably the most key policy questions. It provides an original comparative analysis of household portfolios in countries for which detailed household-level data are to be had (america, the UK, Italy, Germany, and the Netherlands). In any case, it uses microdata for an in-depth study of the portfolio composition of population groups of special policy interest, such as the young, the elderly, and the rich.

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