Quid pro quo: the institutional environment and the allocation of household wealth

T Valk

No 19-25, Working Papers from Utrecht School of Economics

Abstract: What can account for the allocation of household wealth? In this article I analyse the evolution of the French and Dutch household portfolio between 1963 and today. I employ a Financial Almost Ideal Demand System after Blake (2004) to estimate wealth and interest rate elasticities for five wealth classes: M1, Savings, Equity, Life-insurance and pension assets and housing. The main contribution of the paper is that I highlight the importance of the institutional environment for the allocation of household wealth. The liberalization wave of French finance in the 1980s is reflected in the estimated elasticities, which increase in size for those assets that became more widely available. Institutional change in the Netherlands was much more limited, which is reflected in the relative stability of the estimated interest and wealth coefficients.

Keywords: household wealth; portfolio choice; model (search for similar items in EconPapers)
Date: 2019-12
References: Add references at CitEc
Citations:

Downloads: (external link)
https://dspace.library.uu.nl/bitstream/handle/1874/394040/19_25.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:use:tkiwps:1925

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Utrecht School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Marina Muilwijk ().