Portfolio Allocation over the Life Cycle: Evidence from Swedish Household Data

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2001:4

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: General ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Macroeconomics: Consumption; Saving; Wealth ; Portfolio Choice; Investment Decisions ; Demographic Economics: General
• Subject: Life cycle ; asset demand ; portfolio choice ; cohort ; differential mortality ; Sweden ; Portfolio-Management ; Lebenszyklus ; Privater Haushalt ; Schweden

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Andersson, Björn
• Event: Veröffentlichung
• (who): Uppsala University, Department of Economics
• (where): Uppsala
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/82936
• Last update: 10.03.2025, 11:43 AM CET