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Where do French people invest their savings?

Author

Listed:
  • Émilie Candus
  • Christian Pfister
  • Franck Sédillot

Abstract

France has savings in abundance, but little of it goes towards long-term business financing – particularly equity financing. Real estate assets form a dominant presence in household wealth, with financial assets essentially made up of life insurance contracts and bank deposits. Fewer than 12% of households owned equities directly in 2015, down from 16.3% in 2004. This situation cannot be put down to irrational household behaviour. Rather, the explanations lie with inadequate albeit improving returns on equity investments, particularly in comparison with the US stock market, the small size of the French market, domestic levels of financial literacy and advice, which could be raised, and regulatory and tax incentives, which do little to support risk taking.

Suggested Citation

  • Émilie Candus & Christian Pfister & Franck Sédillot, 2017. "Where do French people invest their savings?," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 48, pages 5-22, Winter.
    • Handle: RePEc:bfr:quarte:2017:48:01
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    References listed on IDEAS

    as
    1. Kevin J. Lansing & Agnieszka Markiewicz, 2018. "Top Incomes, Rising Inequality and Welfare," Economic Journal, Royal Economic Society, vol. 128(608), pages 262-297, February.
    2. Dani Rodrik, 2018. "Populism and the economics of globalization," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 12-33, June.
    3. Lindsey, Brink & Teles, Steven, 2017. "The Captured Economy: How the Powerful Become Richer, Slow Down Growth, and Increase Inequality," OUP Catalogue, Oxford University Press, number 9780190627768.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Christian Pfister, 2019. "Central Bank Digital Currency:One, Two or None?," Working papers 732, Banque de France.

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    More about this item

    Keywords

    households; financial; assets; savings; national; accounts; intermediation; securities ownership; portfolio; selection; equities; debt; securities; CIS; life insurance; pension funds;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I20 - Health, Education, and Welfare - - Education - - - General
    • N22 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: 1913-
    • N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-

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