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Portfolio Composition and Pension Wealth: An Econometric Study

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  • Louis Dicks-Mireaux
  • Mervyn A. King

Abstract

There has been very little study of the consequences of pension wealth for the composition of household portfolios. Using individual data for 10,118 Canadian households we estimate the portfolio effect of pension wealth. Because most households do not own all of the assets which we are able to distinguish, we model asset demands as a mixed discrete-continuous portfolio choice problem. We find that whereas there is an identifiable effect of pension wealth on total private savings, the effect on portfolio choice is less significant. Moreover, within the area of portfolio composition the main effect is in terms of the particular number and combination of assets held rather than the amount of any given asset as a proportion of total wealth.

Suggested Citation

  • Louis Dicks-Mireaux & Mervyn A. King, 1982. "Portfolio Composition and Pension Wealth: An Econometric Study," NBER Working Papers 0903, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:0903
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    Cited by:

    1. Nikolov, Plamen & Adelman, Alan, 2019. "Do private household transfers to the elderly respond to public pension benefits? Evidence from rural China," The Journal of the Economics of Ageing, Elsevier, vol. 14(C).
    2. R. Glenn Hubbard, 1984. "Social Security and Household Portfolio Allocation," NBER Working Papers 1361, National Bureau of Economic Research, Inc.
    3. Ligon, James A., 1995. "The impact of retirement wealth upon portfolio composition of individuals," Journal of Economics and Business, Elsevier, vol. 47(3), pages 303-316, August.
    4. Aboohamidi, Abbas & Chidmi, Benaissa, 2015. "Changes in the Wealth of American Households during the 2007-2009 Financial Crisis in the U.S," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205451, Agricultural and Applied Economics Association.
    5. Dong Zhou, 2016. "The Long-term Impacts of the Cultural Revolution: A Micro-Analysis," LABOUR, CEIS, vol. 30(3), pages 285-317, September.

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