Windfall gains and stock market participation
作者： Joseph Briggs , David Cesarini , Erik Lindqvist , Robert Östling
DOI: 10.1016/J.JFINECO.2020.07.014
关键词: Equity (finance) 、 Stock market 、 Restricted stock 、 Lottery 、 Non-qualified stock option 、 Labour economics 、 Stock market bubble 、 Windfall gain 、 Monetary economics 、 Economics 、 Stock (geology)
摘要: We exploit the randomized assignment of lottery prizes in a large administrative Swedish data set to estimate the causal effect of wealth on stock market participation. A $150,000 windfall gain increases the stock market participation probability by 12 percentage points among prelottery nonparticipants but has no discernible effect on prelottery stock owners. A structural life cycle model significantly overpredicts entry rates even for very high entry costs (up to $31,000). Additional analyses implicate pessimistic beliefs regarding equity returns as …
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