Full Citation

Title: Industry Clusters and the Geography of Portfolio Choice

Citation Type: Miscellaneous

Publication Year: 2019

ISBN:

ISSN:

DOI:

NSFID:

PMCID:

PMID:

Abstract: We investigate the impact of local agglomeration economies on household portfolio choice. Using detailed location and employment data from two U.S. household surveys , we document that individuals who work in locally agglomerated industries are more likely to invest in risky assets. This pattern cannot be explained by households sorting on latent factors, local employers' stock compensation and pension policies, or investors' local biases. Instead, the relation between local agglomeration and portfolio decisions is consistent with industry clusters enhancing human capital and in turn, raising workers' effective risk tolerance. Our findings highlight the role of geography in shaping household financial decisions. as well as session and seminar participants at the ITAM

Url: https://ssrn.com/abstract=2909168

User Submitted?: No

Authors: Addoum, Jawad M; Delikouras, Stefanos; Ke, Da; Korniotis, George M.

Publisher: Cornell University

Data Collections: IPUMS USA

Topics: Housing and Segregation, Other

Countries: