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Analysis of Variance in Household Financial Portfolio Choice: Evidence from Spain

Author

Listed:
  • F. J. Callado-Munoz

    (Centro Universitario de la Defensa de Zaragoza, Academia General Militar, Zaragoza, Spain)

  • J. Gonzalez-Chapela

    (Centro Universitario de la Defensa de Zaragoza, Academia General Militar, Zaragoza, Spain)

  • N. Utrero-Gonzalez

    (Centro Universitario de la Defensa de Zaragoza, Academia General Militar, Zaragoza, Spain)

Abstract

We analyse the determinants of the household financial portfolio allocation using an estimator and a variance decomposition that take into account the constrained nature of household portfolio allocations. We apply these methods to a large data set of financial assets. Results show that the main factors underlying household financial portfolio choice in Spain are age and net wealth. Among others, there is also evidence of sizeable effects associated with risk aversion, education, liquidity constraints and income, but very modest effects are associated with family size and having accounts in stand-alone internet banks. Implications for policy are also derived.

Suggested Citation

  • F. J. Callado-Munoz & J. Gonzalez-Chapela & N. Utrero-Gonzalez, 2017. "Analysis of Variance in Household Financial Portfolio Choice: Evidence from Spain," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 67(5), pages 439-459, October.
    • Handle: RePEc:fau:fauart:v:67:y:2017:i:5:p:439-459
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    More about this item

    Keywords

    household portfolio; multivariate fractional logit; analysis of variance; Spanish Survey of Household Finances;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • D10 - Microeconomics - - Household Behavior - - - General
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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