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Identifier to cite or link to this item: https://hdl.handle.net/10086/14406

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Title
Household Portfolios in Japan: Interaction between Equity and Real Estate Holdings over the Life Cycle
Creator
Creator Name
Iwaisako, Tokuo Iwaisako, Tokuo
祝迫, 得夫 祝迫, 得夫
イワイサコ, トクオ イワイサコ, トクオ
Affiliation
Affiliation Name
University of Tsukuba
Affiliation
Affiliation Name
Hitotsubashi University
Editor
Contributor Name
世代間問題研究プロジェクト（世代間利害調整） = Setting Options for Fair Distribution of Well-being among Different Generations, Project on Intergenerational Equity
Abstract
I study the relationship between portfolio choice and age for the Japanese households by means of micro data and by paying particular attention to the interaction between decisions to hold stocks and real estate. The major findings are: First, equity shares in financial wealth (S/FW) increase with age among young households, peaking in the fifties age group, then becoming constant. This peak comes in a much later stage of the life cycle compared with Amerkis and Zeldes (2001) report about U.S. households. Second, we observe exactly the same age-related pattern for real estate shares in household total wealth (RE/TW). Third, with respect to both shares, S/FW and RE/TW, the age-related patterns are mostly explained by the decision to hold or not to hold stocks/real estate. Fourth, no age-related pattern in equity holding is observed for households that do not own real estate. These findings suggest that the age-related pattern observed in stock holding will be mostly explained by household's tenure choice of housing. Households who are to purchase and have just purchased houses cannot take risky positions in financial investment because they are saving for down payments or taking heavily leveraged positions by taking out housing loans. Therefore any serious attempt at modeling Japanese households' dynamic portfolio choice should incorporate the effect of housing tenure choice. In the second half of the paper, we draw some policy implications from these findings.
Description
First draft: March 2001; This Draft: February 2002
37315
Publisher
Institute of Economic Research, Hitotsubashi University
Issued Date
2002-02
Language
English(eng)
Resource Type
technical report
Version Type
VoR
Is Part OfRelation -
Related Title
Discussion Paper ; No. 58
NCID
AA11851730
Number of Pages
37
Sponsorship
科学研究費補助金（特定領域研究） = Grant-in-Aid for Scientific Research on Priority Areas
Appears in Collections
Discussion paper / Setting Options for Fair Distribution of Well-being among Different Generations, PIE
URL
https://hdl.handle.net/10086/14406