Are Economists More Likely to Hold stocks?

Charlotte Christiansen, Juanna Schröter Joensen, Jesper Rangvid

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Using a large panel data set containing detailed information on educational attainments as well as financial and socioeconomic variables for individual investors, we show that economists are more likely to hold stocks than otherwise identical investors. First, we consider the change in stockholdings associated with (i) completing an economics education and (ii) an economist moving into the household. Second, we model stock market participation using a probit model with unobserved individual heterogeneity. Third, instrumental variables estimation allows us to identify the causal effect of an economics education on stock market participation. Throughout, we focus explicitly on the effect of a change in educational status on the likelihood of holding stocks.
Using a large panel data set containing detailed information on educational attainments as well as financial and socioeconomic variables for individual investors, we show that economists are more likely to hold stocks than otherwise identical investors. First, we consider the change in stockholdings associated with (i) completing an economics education and (ii) an economist moving into the household. Second, we model stock market participation using a probit model with unobserved individual heterogeneity. Third, instrumental variables estimation allows us to identify the causal effect of an economics education on stock market participation. Throughout, we focus explicitly on the effect of a change in educational status on the likelihood of holding stocks.
LanguageEnglish
JournalReview of Finance
Volume12
Issue number3
Pages465-496
Number of pages32
ISSN1572-3097
DOIs
StatePublished - 2008

Keywords

    Cite this

    Christiansen, C., Joensen, J. S., & Rangvid, J. (2008). Are Economists More Likely to Hold stocks? Review of Finance, 12(3), 465-496. DOI: 10.1093/rof/rfm026
    Christiansen, Charlotte ; Joensen, Juanna Schröter ; Rangvid, Jesper. / Are Economists More Likely to Hold stocks?. In: Review of Finance. 2008 ; Vol. 12, No. 3. pp. 465-496
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    Christiansen, C, Joensen, JS & Rangvid, J 2008, 'Are Economists More Likely to Hold stocks?' Review of Finance, vol. 12, no. 3, pp. 465-496. DOI: 10.1093/rof/rfm026

    Are Economists More Likely to Hold stocks? / Christiansen, Charlotte; Joensen, Juanna Schröter; Rangvid, Jesper.

    In: Review of Finance, Vol. 12, No. 3, 2008, p. 465-496.

    Research output: Contribution to journalJournal articleResearchpeer-review

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    Christiansen C, Joensen JS, Rangvid J. Are Economists More Likely to Hold stocks? Review of Finance. 2008;12(3):465-496. Available from, DOI: 10.1093/rof/rfm026