Health status and portfolio choice: Causality or heterogeneity?

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Show simple item record Fan, E en_US Zhao, Lucy en_US
dc.contributor.editor en_US 2010-05-28T09:55:02Z 2010-05-28T09:55:02Z 2009 en_US
dc.identifier 2008007847 en_US
dc.identifier.citation Fan E and Zhao Ruoyun 2009, 'Health status and portfolio choice: Causality or heterogeneity?', Elsevier Science Bv, vol. 33, no. 6, pp. 1079-1088. en_US
dc.identifier.issn 0378-4266 en_US
dc.identifier.other C1 en_US
dc.description.abstract This paper explores the role of unobserved individual characteristics in the health-assets and health-portfolio correlations. We apply various econometrics models to a unique longitudinal dataset with rich information that allows for the exploitation of four different health indices. Our findings show strong cross-sectional correlations between health and both financial and non-financial assets, but these correlations seem to be mainly driven by heterogeneity as the correlations largely disappear in the fixed-effects model. Adverse health shocks, however, are found to motivate a safer portfolio choice even after individual fixed-effects are controlled for - a result consistent with the prediction made by the background risk theory. Our findings suggest that health shocks shift investment from risky assets toward other financial assets, but keep the total financial assets unchanged. en_US
dc.language en_US
dc.publisher Elsevier Science Bv en_US
dc.relation.isbasedon en_US
dc.title Health status and portfolio choice: Causality or heterogeneity? en_US
dc.parent Journal Of Banking & Finance en_US
dc.journal.volume 33 en_US
dc.journal.number 6 en_US
dc.publocation Amsterdam en_US
dc.identifier.startpage 1079 en_US
dc.identifier.endpage 1088 en_US BUS.School of Finance and Economics en_US
dc.conference Verified OK en_US
dc.for 150200 en_US
dc.personcode 0000052860 en_US
dc.personcode 995169 en_US
dc.percentage 100 en_US Banking, Finance and Investment en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom en_US en_US
dc.location.activity ISI:000265309800011 en_US
dc.description.keywords Health; Portfolio choice; Heterogeneity; Causality en_US
dc.staffid en_US
dc.staffid 995169 en_US

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