Portfolio allocation over the life cycle : evidence from Swedish household data
2001 (English)Report (Other academic)
This paper provides empirical evidence on life-cycle patterns in the asset allocation of Swedish households. Data on household portfolio allocation are collected from the HINK surveys for the period 1982-1992, and portfolio shares of different asset categories are regressed on age, period, and cohort dummies as well as socio-economic and demographic variables. There are evident differences in the age profiles for the demand of different assets. The fraction of “risky” financial assets follows a hump-shaped age profile, as does the share of total real assets. While the probability of ownership of “safe” financial assets increases over life, the weight in the portfolio has a U-shaped age pattern. This is also true for the fraction of total financial assets. Furthermore, there are differences in the asset allocation of different birth cohorts; the portfolio weight of real assets is relatively higher for the “baby-boom” generation, while younger generations are more prone to invest in “risky” financial assets.
Place, publisher, year, edition, pages
Uppsala: Nationalekonomiska institutionen , 2001. , 33 p.
Working paper, ISSN 0284-2904
IdentifiersURN: urn:nbn:se:uu:diva-2510ISBN: 99-3424129-3OAI: oai:DiVA.org:uu-2510DiVA: diva2:128771