Wealth redistribution in bubbles and crashes

• 成果类型: Article
• 署名作者: An, Li; Lou, Dong; Shi, Donghui
• 署名单位: Tsinghua University; University of London; London School Economics & Political Science; Centre for Economic Policy Research - UK; Fudan University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2022.01.001
• 发表日期: 2022
• 页码: 134-153
• 关键词: Bubbles and crashes; Investment skills; wealth inequality; market participation

摘要

What are the social-economic consequences of financial market bubbles and crashes? Using novel comprehensive administrative data from China, we document a substantial increase in inequality of wealth held in equity by Chinese households in the 2014-15 bubble-crash episode: the largest 0.5% households in the equity market gain, while the bottom 85% lose, 250B RMB through active trading in this period, or 30% of either group's initial equity wealth. In comparison, the return differential between the top and bottom household groups in 2012-14, a period of a relatively calm market, is on the order of 1 to 3%. We examine several possible explanations for these findings and discuss their broader implications. (C) 2022 Elsevier B.V. All rights reserved.