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DIW Discussion Papers 860 / 2009
The appropriate design of monetary policy in integrated financial markets is one of the most challenging areas for central banks. One hot topic is whether the rise in liquidity in recent years has contributed to the formation of price bubbles in asset markets. If strong linkages exist, the inclusion of asset prices in the monetary policy rule can eventually limit speculative runs and negative effects ...
2009| Christian Dreger, Jürgen Wolters
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DIW Discussion Papers 819 / 2008
The real interest partity (RIP) condition combines two cornerstones in international finance, uncovered interest parity (UIP) and ex ante purchasing power parity (PPP). The extent of deviation from RIP is therefore an indicator of the lack of product and financial market integration. This paper investigates whether the nominal exchange rate regime has an impact on RIP. The analysis is based on 15 annual ...
2008| Christian Dreger
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DIW Discussion Papers 813 / 2008
Monetary growth in the euro area has exceeded its target since several years. At the same time, the money demand function seems to be increasingly unstable if more recent data are used. If the link between money balances and the macroeconomy is fragile, the rationale of monetary aggregates in the ECB strategy has to be doubted. In fact, a rise in the income elasticity after 2001 can be observed, and ...
2008| Christian Dreger, Jürgen Wolters
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DIW Discussion Papers 807 / 2008
This paper explores the relationship between risk attitude and asset diversification in household portfolios. We first examine the impact of manifested risk aversion on the total number of distinct assets held in a portfolio (naive diversification). The second part of the paper focuses on a more sophisticated strategy of diversification and asks whether financial theory is compatible with observed ...
2008| Nataliya Barasinska, Dorothea Schäfer, Andreas Stephan
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DIW Discussion Papers 795 / 2008
Money growth in the euro area has exceeded its target since 2001. Likewise, recent empirical studies did not find evidence in favour of a stable long run money demand function. The equation appears to be increasingly unstable if more recent data are used. If the link between money balances and the macroeconomy is fragile, the rationale of monetary aggregates in the ECB strategy has to be doubted. In ...
2008| Christian Dreger, Jürgen Wolters
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SOEPpapers 224 / 2009
This study questions the popular stereotype that women are more risk averse than men in their financial investment decisions. The analysis is based on micro-level data from large-scale surveys of private households in five European countries. In our analysis of investment decisions, we directly account for individuals' self-perceivedwillingness to take financial risks. The empirical evidence we provide ...
2009| Oleg Badunenko, Nataliya Barasinska, Dorothea Schäfer
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SOEPpapers 117 / 2008
This paper explores the relationship between risk attitude and asset diversification in household portfolios. We first examine the impact of manifested risk aversion on the total number of distinct assets held in a portfolio (naive diversification). The second part of the paper focuses on a more sophisticated strategy of diversification and asks whether financial theory is compatible with observed ...
2008| Nataliya Barasinska, Dorothea Schäfer, Andreas Stephan
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FINESS Working Papers 7.4B / 2010
This paper develops a two-country DSGE model for a monetary union in which each country is populated by two types of households - savers and borrowers - and two types of production sectors - a consumption goods sector and a housing sector. Households trade nominal private debt in equilibrium, with the borrowers being subject to a collateral constraint, which is tied to the value of the stock of housing. ...
2010| Steffen Elstner, Nikolay Hristov, Oliver Hülsewig, Timo Wollmershäuser
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FINESS Working Papers 6.3 / 2010
This study investigates whether gender discrimination is taking place in an innovative credit market known as peer-to-peer lending. Based on the data of the largest German peer-to-peer lending platform, we observe that female borrowers pay on average higher interest rates than males despite the fact that the two gender groups do not differ with respect to their credit risk. Our analysis shows however ...
2010| Nataliya Barasinska, Dorothea Schäfer
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FINESS Working Papers 6.2 / 2010
This study appraises the role of gender in the behavior of individuals who make risky investments. The analysis bases on real-life investment data collected at an online market for peer-to-peer lending. The aim is to find out whether male and female investors differ in propensity for risk taking and performance of investments. Contrary to most existing studies, I find no evidence for gender differences. ...
2010| Nataliya Barasinska