Health status and portfolio choice: Causality or heterogeneity?

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Show simple item record Fan, E Zhao, L 2010-05-28T09:55:02Z 2009-01
dc.identifier.citation Journal Of Banking & Finance, 2009, 33 (6), pp. 1079 - 1088
dc.identifier.issn 0378-4266
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.
dc.publisher Elsevier Science Bv
dc.relation.isbasedon 10.1016/j.jbankfin.2008.12.019
dc.title Health status and portfolio choice: Causality or heterogeneity?
dc.type Journal Article
dc.parent Journal Of Banking & Finance
dc.journal.volume 6
dc.journal.volume 33
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 1502 Banking, Finance and Investment
dc.personcode 995169
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.description.keywords Health
dc.description.keywords Portfolio choice
dc.description.keywords Heterogeneity
dc.description.keywords Causality
pubs.embargo.period Not known
pubs.organisational-group /University of Technology Sydney
pubs.organisational-group /University of Technology Sydney/Faculty of Business
pubs.organisational-group /University of Technology Sydney/Faculty of Business/Finance
utslib.copyright.status Closed Access 2015-04-15 12:17:09.805752+10
utslib.collection.history Closed (ID: 3)

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