| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP14955 |
| DP14955 Can Security Design Foster Household Risk-Taking? | |
| Laurent E. Calvet; Claire Célérier; Boris Vallee | |
| 发表日期 | 2020-06-28 |
| 出版年 | 2020 |
| 语种 | 英语 |
| 摘要 | This paper shows that securities with a non-linear payoff design can foster household risk-taking. We demonstrate this effect empirically by exploiting the introduction of capital guarantee products in Sweden from 2002 to 2007. The fast and broad adoption of these products is associated with an increase in expected financial portfolio returns, which is especially strong for households with a low risk appetite ex ante. We explore possible economic explanations by developing a life-cycle model of consumption-portfolio decisions. The capital guarantee substantially increases risk-taking by households with pessimistic beliefs or preferences combining loss aversion and narrow framing. The welfare gains from financial innovation are stronger for households that are less willing to take risk ex ante. Our results illustrate how security design can mitigate behavioral biases and enhance economic well-being. |
| 主题 | Financial Economics |
| 关键词 | Security design Household finance Capital guarantee product Behavioral biases Risk-taking |
| URL | https://cepr.org/publications/dp14955 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/543900 |
| 推荐引用方式 GB/T 7714 | Laurent E. Calvet,Claire Célérier,Boris Vallee. DP14955 Can Security Design Foster Household Risk-Taking?. 2020. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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