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Stated Product Choices of Heterogeneous Agents are Largely Consistent with Standard Models

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Listed:
  • Bart Dees

    (Tilburg University, Nationale Nederlanden and Netspar)

  • Theo Nijman

    (Tilburg University and Nestpar)

  • Arthur Soest

    (Tilburg University and Nestpar)

Abstract

In this paper we analyze how stated choices for the amount of risk in pension assets of Dutch participants in DC pension products vary with their characteristics. We find strong evidence that this variation is in line with standard portfolio choice models. Heterogeneity in age, risk aversion, loss aversion, non-pension financial wealth, the relative importance of DC pension wealth and educational attainment leads to differences in product choice that are largely in line with standard theory. This applies to investment choices in the accumulation phase as well as in the retirement phase.

Suggested Citation

  • Bart Dees & Theo Nijman & Arthur Soest, 2023. "Stated Product Choices of Heterogeneous Agents are Largely Consistent with Standard Models," De Economist, Springer, vol. 171(3), pages 267-302, September.
    • Handle: RePEc:kap:decono:v:171:y:2023:i:3:d:10.1007_s10645-023-09424-0
    DOI: 10.1007/s10645-023-09424-0
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    More about this item

    Keywords

    Investment risk; DC pensions; Personal finance;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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