Portfolio Composition and Pension Wealth: An Econometric Study

62 Pages Posted: 25 Jun 2004 Last revised: 22 Dec 2022

See all articles by Louis Dicks-Mireaux

Louis Dicks-Mireaux

National Bureau of Economic Research (NBER)

Mervyn King

Bank of England; National Bureau of Economic Research (NBER)

Date Written: June 1982

Abstract

There has been very little study of the consequences of pension wealth for the composition of household portfolios. Using individual data for 10,118 Canadian households we estimate the portfolio effect of pension wealth. Because most households do not own all of the assets which we are able to distinguish, we model asset demands as a mixed discrete-continuous portfolio choice problem. We find that whereas there is an identifiable effect of pension wealth on total private savings, the effect on portfolio choice is less significant. Moreover, within the area of portfolio composition the main effect is in terms of the particular number and combination of assets held rather than the amount of any given asset as a proportion of total wealth.

Suggested Citation

Dicks-Mireaux, Louis and King, Mervyn A., Portfolio Composition and Pension Wealth: An Econometric Study (June 1982). NBER Working Paper No. w0903, Available at SSRN: https://ssrn.com/abstract=299781

Louis Dicks-Mireaux

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