The financial sector plays a crucial role in society. Consequently, prior research has examined the preferences of professionals working in finance. However, these studies have tended to be cross-sectional and have neglected the dynamic roles played by (self-)selection and socialization. This paper uses longitudinal data from Germany to examine how individuals’ financial risk preferences affect their ...
DIW-Studie untersucht wirtschaftliche Erholung nach Naturkatastrophen in 25 Industrieländern – Bruttoinlandsprodukt, privater Konsum und Investitionstätigkeit entwickeln sich bei hoher internationaler Finanzmarktintegration besser als bei geringerer Integration – Insbesondere Finanzierung über Eigenkapital beschleunigt Erholung – EU sollte Kapitalmarktunion daher vorantreiben und entsprechende Rahmenbedingungen ...
We examine the additivity of stock-market expectations over different time intervals. When asked about a ten-year interval, survey respondents expect a stock-price change that is not equal to, but closer to zero than, the sum of their expectations over two shorter time intervals that cover the same ten years. Such sub-additivity is irrational in that it cannot stem from aggregating short-term expectations. ...
Die westlichen Regierungen haben gleich zu Beginn der Invasion Russlands in die Ukraine umfangreiche Finanzsanktionen gegen Russland beschlossen, wobei das Einfrieren der russischen Fremdwährungsreserven besonders hervorsticht. Während diese Sanktionen anfangs eine große Wirkung zeigten und der Kurs des Rubel abstürzte, entwickelte Russland erfolgreiche Gegenstrategien, die den Rubel schließlich wieder ...
While there is a broad consensus in the literature that stock ownership is associated with individual characteristics, such as wealth, income, risk preferences, and financial literacy, less is known about the dynamics of stock market participation (SMP). Major fluctuations in SMP are oftentimes related to political events, economic shocks, and technological disruptions. We discuss the literature that ...