Informative social interactions

Article dans une revue: Household finances are confidential and discussions are limited to a subset of peers. We collect novel representative survey data to examine separately whether interactions with inner and outer social circles influence return perceptions, expectations, and exposure to a widely known financial instrument in a developed economy with multiple information sources. We find that a respondent's connectedness, proxied by perceived prevalence of information or participation in the small financial circle, improves expectation accuracy indirectly, through boosting accuracy of perceived past returns; and influences stock participation and exposure not only by influencing expectations, but also directly.

Auteur(s)

Luc Arrondel, Hector Calvo-Pardo, Chryssi Giannitsarou, Michael Haliassos

Revue
  • Journal of Economic Behavior and Organization
Date de publication
  • 2022
Mots-clés
  • Finances des ménages
  • Subjective expectations
  • Peer effects Information networks
  • Portfolio choice
Pages
  • 246 – 263
Version
  • 1
Volume
  • 203