Informative Social Interactions

Forschungsbereich: Household Finance
Forscher: Luc Arrondel,
Hector Calvo-Pardo,
Chryssi Giannitsarou,
Michael Haliassos
Datum: Dec 2019
Abstract:

In this paper, the authors focus on individuals' decisions on stock market participation and exposure and on their underlying subjective expectations of future stock market returns, as well as subjective perceptions of recent past returns. Based on survey data from a representative sample of the French population, the authors examine whether there is a significant role for informative social interactions in each of these aspects of stockholding behavior. Their findings support that, in a financially developed economy with a mature stock market, informative social interactions are present and pervasive across perceptions, expectations, and behavior, both at the extensive and at the intensive margin.

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