Weekly Seminar Series
Nathanael Vellekoop from the University of Toronto visits the department on November 23rd
Nov 22, 2022
Assistant Professor of Economics, Nathanael Vellekoop, University of Toronto will visit our department in-person Wednesday November 23rd, 2022 at 12:30 p.m.
Nathanael will be presenting a seminar on Household Inflation Expectations and Portfolio Choice
How are inflation expectations and financial portfolio decisions of households related? I take an empirical approach and link household surveys with inflation expectations to administrative data with household income and wealth for the years 2011-2019. Using an instrumental variable approach I find that that households with higher expected inflation are less likely to own risky assets, invest smaller amounts in risky assets and reduce the risky asset share. Results are similar and effect sizes larger when I look at a subsample with the top 20% of net worth households.