Household Finance eJournal最新文献

{"title":"Public Pensions and Private Savings","authors":"Esteban García-Miralles, Jonathan M. Leganza","doi":"10.2139/ssrn.3797771","DOIUrl":"https://doi.org/10.2139/ssrn.3797771","url":null,"abstract":"How does the provision of public pension benefits impact private savings? We answer this question in the context of a reform in Denmark that altered old-age benefit payouts through a discontinuous increase in pension eligibility ages contingent on birthdate. Using detailed administrative data and a regression discontinuity design, we identify the causal effects of the policy, leveraging our setting to study essentially the entire financial portfolio. We document responses over two distinct time horizons. First, we show a lack of responses after the reform was announced but before it was implemented, inconsistent with the notion that future differences in pension eligibility impact savings. Second, we show large savings responses after implementation, when delayed benefit eligibility induces individuals to extend employment. Specifically, we find increased contributions to both employer-sponsored and personal retirement accounts, whereas we find no evidence of adjustments to other savings vehicles, such as bank or stock market accounts. Additional analyses point to inertia as a leading explanatory channel. The increased savings in personal retirement plans is entirely driven by those who made consistent contributions in the past. Moreover, the increased savings in employer-sponsored plans is largely explained by continuing to contribute at employer default rates, highlighting a role for firm policies in mediating responses to social security reform.","PeriodicalId":428959,"journal":{"name":"Household Finance eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126055233","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Shoring Up Shortfalls: Women, Retirement and the Growing Gigsupp Economy","authors":"C. Bruckner, J. Forman","doi":"10.2139/ssrn.3801283","DOIUrl":"https://doi.org/10.2139/ssrn.3801283","url":null,"abstract":"In recent years, high-profile Silicon Valley firms have engineered billion-dollar IPOs through developing online and app-based platforms that connect service providers and sellers with customers and process their payments (the “online platform economy”). Today, millions of Americans earn income using platforms developed by Uber, Etsy, and Airbnb; and research has identified the limitations of existing federal tax rules to facilitate tax compliance of these workers and considered the consequences of their failure to pay self-employment taxes. However, questions remain as to the changing demographics and motivations of online platform economy workers and their retirement income security. Titled, Shoring Up Shortfalls: Women, Retirement and the Growing Gig Economy, we propose to identify and analyze: (i) the existing demographic data on this workforce; (ii) their economic motivations and retirement income needs; and (iii) the federal tax, retirement policy, and financial literacy proposals that would enable the gig economy workforce to support itself in retirement.","PeriodicalId":428959,"journal":{"name":"Household Finance eJournal","volume":"50 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125065566","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"What Do the Portfolios of Individual Investors Reveal About the Cross-Section of Equity Returns?","authors":"Sébastien Betermier, Laurent E. Calvet, Samuli Knüpfer, J. Kvaerner","doi":"10.2139/ssrn.3795690","DOIUrl":"https://doi.org/10.2139/ssrn.3795690","url":null,"abstract":"We construct a parsimonious set of equity factors by sorting stocks according to the sociodemographic characteristics of the individual investors who own them. The analysis uses administrative data on the stockholdings of Norwegian investors in 1997-2018. Consistent with financial theory, a mature-minus-young factor, a high wealth-minus-low wealth factor, and the market factor price stock returns. Our three factors span size, value, investment, profitability, and momentum, and perform well in out-of-sample bootstrap tests. The tilts of investor portfolios toward the new factors are driven by wealth, indebtedness, macroeconomic exposure, age, gender, education, and investment experience. Our results are consistent with hedging and sentiment jointly driving portfolio decisions and equity premia.","PeriodicalId":428959,"journal":{"name":"Household Finance eJournal","volume":"62 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130488065","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Inferring Financial Sophistication: Evidence Using Credit Card Balance Transfers and the CARD Act","authors":"Young-Hwa Seok, James Wang","doi":"10.2139/ssrn.3606693","DOIUrl":"https://doi.org/10.2139/ssrn.3606693","url":null,"abstract":"We measure financial sophistication by observing the use of a credit card balance transfer strategy. Examining trends before and after the phase-out of this strategy due to the 2009 CARD Act, financially sophisticated borrowers are less risky, face more attractive card terms, and pay lower fees. We find no evidence that card lenders price sophistication into initial card terms such as APR or credit limits. The prevalence of sophisticated borrowers in a zip code strongly correlates with local graduation and unemployment rates. We also document positive spillovers of credit card sophistication onto usage and risk for other consumer loans.","PeriodicalId":428959,"journal":{"name":"Household Finance eJournal","volume":"52 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133641138","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Switching from Cash to Cashless Payments during the COVID-19 Pandemic and Beyond","authors":"T. Wisniewski, Michał Polasik, Radoslaw Kotkowski, Andrea Moro","doi":"10.2139/ssrn.3794790","DOIUrl":"https://doi.org/10.2139/ssrn.3794790","url":null,"abstract":"Using a survey of 5,504 respondents from 22 European countries, we examine preferences regarding cash and cashless payments at the point of sale (POS) during the COVID-19 crisis. Consumers favor cashless transactions when they believe that handling cash presents a higher risk of infection. Moreover, the habits they develop during periods of restrictions and lockdowns appear to further diminish their appetite for transacting in cash. Not only do these factors affect current choice of payment method, but also influence declared future intentions to move away from cash after the pandemic is over.","PeriodicalId":428959,"journal":{"name":"Household Finance eJournal","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122304372","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Multiple Reference Points and Length of Ownership in the Housing Market","authors":"Naqun Huang, J. Lien, Jie Zheng","doi":"10.2139/ssrn.3791283","DOIUrl":"https://doi.org/10.2139/ssrn.3791283","url":null,"abstract":"Reference-dependent utility has been shown to have a significant influence on housing market activity. Sellers facing a nominal loss on their home due to market conditions, tend to inflate the asking price and thus the transaction price of their home, indicative of loss aversion. However, the original purchase price of a home may lose influence as a reference-point as the period of ownership increases, while homeowners rely increasingly on other benchmarks such as neighboring homes’ sales prices as reference points. In other words, a homeowner may have multiple reference points in their underlying utility function, whose relative influences shift in importance over time. We use comprehensive administrative data on residential real estate transactions in Singapore’s private housing market to test the influences of original purchase price and recent neighborhood price as reference points over the length of homeownership. Purchase price and neighborhood price are each valid reference points based on established empirical methods in the behavioral and housing economics literature. By testing for their relative influences as a function of length of ownership, we find that prior purchase price is more influential for the first years of ownership, while neighborhood price becomes more influential during the subsequent holding years. Finally, we provide a theoretical framework for understanding the relative influences of multiple reference points over time, which supports the empirical findings.","PeriodicalId":428959,"journal":{"name":"Household Finance eJournal","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-02-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133743333","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Attention Triggers and Investors' Risk-Taking","authors":"M. Arnold, Matthias Pelster, M. Subrahmanyam","doi":"10.2139/ssrn.3612799","DOIUrl":"https://doi.org/10.2139/ssrn.3612799","url":null,"abstract":"This paper investigates how individual attention triggers influence financial risk-taking based on a large sample of trading records from a brokerage service that sends standardized push messages on stocks to retail investors. By exploiting the data in a difference-in-differences (DID) setting, we find that attention triggers increase investors' risk-taking. Our DID coefficient implies that attention trades carry, on average, a 19-percentage point higher leverage than non-attention trades. We provide a battery of cross-sectional analyses to identify the groups of investors and stocks for which this effect is stronger. <br>","PeriodicalId":428959,"journal":{"name":"Household Finance eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-02-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131236868","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Sustainability of (Global) Withdrawal Strategies","authors":"Javier Estrada","doi":"10.2139/SSRN.3783047","DOIUrl":"https://doi.org/10.2139/SSRN.3783047","url":null,"abstract":"The most important financial issue retirees have to deal with is whether their strategy will be able to sustain all the withdrawals they expect to make in retirement, as well as a bequest they aim to leave. For this reason, it is critical to periodically monitor the evolution of a financial plan in order to detect early signs of trouble, which may lead a retiree to introduce dynamic adjustments to a strategy. To that purpose, this article features two tools, a sustainability test and the sustainable withdrawal, and shows how to apply them. It also discusses the empirical evidence on both tools based on a comprehensive sample of 22 countries over a 120-year period.","PeriodicalId":428959,"journal":{"name":"Household Finance eJournal","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132614577","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Modélisation statistique du surendettement des particuliers (Statistical Modelization of Overindebtedness)","authors":"Amandine Tran","doi":"10.2139/ssrn.3840227","DOIUrl":"https://doi.org/10.2139/ssrn.3840227","url":null,"abstract":"<b>French Abstact:</b><br>La procédure de surendettement est née vers la fin des années 1980, dans un contexte de forte expansion des crédits à la consommation. En 2010, un meilleur encadrement des pratiques commerciales de la part des pouvoirs publics a permis de limiter l’ampleur des crédits à la consommation. Le surendettement se concentre désormais sur des populations financièrement fragiles à faibles niveaux d'endettement. L'objectif de cette étude est de mettre en place un modèle explicatif du surendettement. Un premier modèle permet de mettre en évidence l'impact significatif du niveau de vie sur le fait d'être surendetté. Des disparités demeurent toutefois entre les structures familiales. La limite principale de ce premier modèle est le fait qu'il se fonde essentiellement sur des données agrégées. Un second modèle s'intéressant uniquement à la population des ménages surendettés et exploitant une base de données individuelles riche permet cette fois-ci de rendre compte de différents facteurs jouant un rôle dans l'orientation vers le rétablissement personnel, qui est l'orientation proposée aux ménages surendettés les plus en difficulté.<br><br><b>English Abstract:</b> <br>The procedure for overindebtedness was born in the late 1980s, in a context of strong expansion of consumer credit. In 2010, better supervision of business practices by the public authorities helped to limit the scale of consumer credit. Overindebtedness now concerns financially fragile populations with low levels of debt. The main goal of this paper is to set up an explanatory model of overindebtedness. A first model highlights the significant impact of the standard of living on being overindebted. However, disparities remain between family structures. The main limitation of this first model is the fact that it relies essentially on aggregated data. Therefore, a second model, which is focused on the population of overindebted households only and uses a rich database, allows accounting for different factors playing a role in the orientation towards personal recovery, which is the orientation that is offered to the most financially vulnerable overindebted households.","PeriodicalId":428959,"journal":{"name":"Household Finance eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131358712","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Paycheck Protection Program: Small Business Balances, Revenues, and Expenses in the Weeks after Loan Disbursement","authors":"Chris Wheat, Chi Mac","doi":"10.2139/ssrn.3813377","DOIUrl":"https://doi.org/10.2139/ssrn.3813377","url":null,"abstract":"The Paycheck Protection Program (PPP) was an unprecedented effort to provide liquidity to and support the payroll of small businesses impacted by COVID-19. Leveraging daily transactions from a de-identified dataset of small businesses that hold Chase Business Banking deposit accounts and received PPP loans, this report explores loan amounts relative to all operating expenses as well as small business cash flows in the weeks before and after PPP loans were disbursed. The analysis includes businesses that received PPP loans in May and July 2020 and shows that the loans helped bolster small business cash balances and supported expenses during a period of depressed revenues. In particular, we found: (1) Among firms with PPP loans, the proceeds were typically enough to cover 3.8 weeks of expenses;(2) PPP increased the typical small business cash balances by 136 percent, supporting an immediate increase in expenses;(3) Other COVID relief programs and transfers may have bolstered balances of firms that received PPP loans later. While the program supported payroll as intended, policymakers should note that payroll is just one of the many expenses small businesses face and consider that relief for small businesses, especially the vast majority which are nonemployers, may need to encompass more than payroll assistance.","PeriodicalId":428959,"journal":{"name":"Household Finance eJournal","volume":"26 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114886181","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}