Habit persistence in assets demand.

Habit persistence is examined for six asset demand categories using U.S. data and a dynamic forward‐looking model. We find habit persistence is greater for more liquid assets compared to riskier assets and may in part explain low holdings of riskier assets. Cash assets are found to be substitutes wi...

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Publicado en:Southern Economic Journal Vol. 89; no. 3; pp. 975 - 986
Autores principales: Fleissig, Adrian R., Swofford, James L.
Formato: Artículo
Publicado: Wiley-Blackwell Jan2023
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Jan2023
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        atl: Habit persistence in assets demand.
      aug:
        au:
          Fleissig, Adrian R.
          Swofford, James L.
        affil:
          Department of Economics, California State University, Fullerton, Fullerton California,, USA
          Department of Economics, Finance and Real Estate, University of South Alabama, Mobile Alabama,, USA
      su:
        Habit
        Money market funds
        Bond funds
        Portfolio management (Investments)
        Assets (Accounting)
        Liquid assets
      sug:
        subj:
          Habit
          Open-End Investment Funds
          Money market funds
          Other Financial Vehicles
          Portfolio Management
          Money market funds
          Bond funds
          Portfolio management (Investments)
          Assets (Accounting)
          Liquid assets
      keyword:
        asset demand
        budget elasticities
        habit formation
        short‐run long‐run estimates
        asset demand
        budget elasticities
        habit formation
        short‐run long‐run estimates
      ab: Habit persistence is examined for six asset demand categories using U.S. data and a dynamic forward‐looking model. We find habit persistence is greater for more liquid assets compared to riskier assets and may in part explain low holdings of riskier assets. Cash assets are found to be substitutes with other liquid assets under habit formation. Consistent with portfolio analysis, the riskier asset categories of money market mutual funds and bonds are found to be complements in use. The three more risky asset categories have budget elasticities greater than unity indicating that in the long run consumers are more likely to turn to these assets as their wealth increases.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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