Risky Asset Choice over the Life Cycle
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초록
This study explores the relationship between life cycle and risky asset shares using cross-sectional evidence from the 2006 Korean Household Asset Survey by KNSO. This study estimates tobit models for risky asset shares as a function of the life cycle, both not controlling and controlling for household’s characteristics. The present study presents three major conclusions; First, there are important differences across in the shares of different risky assets at different ages. Second, the two types of risky assets, clearly risky and fairly risky assets, have very different share patterns over the life cycle. That is, the share of fairly risky asset increases until householder reaches the age of 60～69 and then begins to decline after that age, while that of clearly risky asset (stock) increases with age only until 40～49 and then begins to decline. Third, life cycle factor significantly affects the share of the fairly risky asset after controlling for household's characteristics, while that of the clearly risky asset is not much influenced by life cycle considerations when controlling the household’s characteristics. These results are important to recognize the effects of population aging on the stock shares of Korean households.
Abstract
This study explores the relationship between life cycle and risky asset shares using cross-sectional evidence from the 2006 Korean Household Asset Survey by KNSO. This study estimates tobit models for risky asset shares as a function of the life cycle, both not controlling and controlling for household’s characteristics. The present study presents three major conclusions; First, there are important differences across in the shares of different risky assets at different ages. Second, the two types of risky assets, clearly risky and fairly risky assets, have very different share patterns over the life cycle. That is, the share of fairly risky asset increases until householder reaches the age of 60～69 and then begins to decline after that age, while that of clearly risky asset (stock) increases with age only until 40～49 and then begins to decline. Third, life cycle factor significantly affects the share of the fairly risky asset after controlling for household's characteristics, while that of the clearly risky asset is not much influenced by life cycle considerations when controlling the household’s characteristics. These results are important to recognize the effects of population aging on the stock shares of Korean households.
참고문헌 (28)
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