Limited Stock Market Participation Among Renters and Homeowners

• 成果类型: Article
• 署名作者: Vestman, Roine
• 署名单位: Stockholm University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhy089
• 发表日期: 2019
• 页码: 1494
• 关键词: OPTIMAL PORTFOLIO CHOICE; asset returns; consumption; COSTS; INEQUALITY; MODEL

摘要

The stock market participation rate among homeowners is twice as high as among renters. This paper builds a life-cycle portfolio choice model with endogenous housing tenure choice. A stylized form of preference heterogeneity generates a substantial difference in participation rates. A majority of households have a large savings motive and choose to be homeowners and participate. A minority of households have a small savings motive and find it less worthwhile to participate. Fewer of these households become homeowners. Difference-in-difference regressions on panel data do not find evidence of a crowding-out effect of homeownership on participation, supporting the message that preference heterogeneity matters.