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Impact of demographic and economic variables on financial policy purchase timing decisions

Author

Listed:
  • L C Thomas

    (University of Southampton)

  • S Thomas

    (University of Southampton)

  • L Tang

    (University of Southampton)

  • O Ap Gwilym

    (University of Wales)

Abstract

This paper investigates the extent to which consumers' demographic factors influence their financial policy purchasing behaviours and also explores how the external economic environment affects consumers' propensities to purchase financial products. The Cox proportional hazard model is used to explore these issues. The results suggest that consumer decisions on the timing of financial product purchases are largely explained by changes in the economic environment in terms of stock market, the housing market, average earnings, consumer confidence, and interest rates. The influence of customer demographic factors is also important but secondary.

Suggested Citation

  • L C Thomas & S Thomas & L Tang & O Ap Gwilym, 2005. "Impact of demographic and economic variables on financial policy purchase timing decisions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(9), pages 1051-1062, September.
    • Handle: RePEc:pal:jorsoc:v:56:y:2005:i:9:d:10.1057_palgrave.jors.2601981
    DOI: 10.1057/palgrave.jors.2601981
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    References listed on IDEAS

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    1. Narendranathan, Wiji & Stewart, Mark B, 1991. "Simple Methods for Testing for the Proportionality of Cause-Specific Hazards in Competing Risk Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(3), pages 331-340, August.
    2. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
    3. M Stepanova & L C Thomas, 2001. "PHAB scores: proportional hazards analysis behavioural scores," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 52(9), pages 1007-1016, September.
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