Gomes, F, Haliassos, M and Ramadorai, T (2021) Household finance: a survey. Journal of Economic Literature, 59 (3). pp. 919-1000. ISSN 0022-0515
Abstract
Household financial decisions are complex, interdependent, and heterogeneous, and central to the functioning of the financial system. We present an overview of the rapidly expanding literature on household finance (with some important exceptions) and suggest directions for future research. We begin with the theory and empirics of asset market participation and asset allocation over the life cycle. We then discuss household choices in insurance markets, trading behavior, decisions on retirement saving, and financial choices by retirees. We survey research on liabilities, including mortgage choice, refinancing, and default, and household behavior in unsecured credit markets, including credit cards and payday lending. We then connect the household to its social environment, including peer effects, cultural and hereditary factors, intra-household financial decision making, financial literacy, cognition and educational interventions. We also discuss literature on the provision and consumption of financial advice.
More Details
Item Type: | Article |
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Subject Areas: | Finance |
Additional Information: |
Copyright © 2020 by the American Economic Association.
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Date Deposited: | 18 Dec 2020 16:12 |
Subjects: |
Investment appraisal Personal finance |
Last Modified: | 21 Nov 2024 03:02 |
URI: | https://lbsresearch.london.edu/id/eprint/1595 |