Inflation and Individual Investors' Behavior: Evidence from the German Hyperinflation.

Autor:	Braggion, Fabio, Meyerinck, Felix von, Schaub, Nic
Předmět:	PRICE inflation INDIVIDUAL investors BEHAVIORAL research BANK customers STOCK prices MONEY illusion CONSUMPTION (Economics) WEIMAR Republic 1918-1933
Zdroj:	Review of Financial Studies; Dec2023, Vol. 36 Issue 12, p5012-5045, 34p
Abstrakt:	We analyze how individual investors respond to inflation. We introduce a unique data set containing information on local inflation and security portfolios of more than 2,000 clients of a German bank between 1920 and 1924, covering the German hyperinflation. We find that individual investors buy fewer (sell more) stocks when facing higher local inflation. This effect is more pronounced for less sophisticated investors. Moreover, we document a positive relation between local inflation and forgone returns following stock sales. Our findings are consistent with individual investors suffering from money illusion. Alternative explanations, such as consumption needs, are unlikely to drive our results. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online [ABSTRACT FROM AUTHOR]
Databáze:	Complementary Index
Externí odkaz:	Zobrazit plný text záznamu Plný text ve formátu HTML
Nepřihlášeným uživatelům se plný text nezobrazuje	K zobrazení výsledku je třeba se přihlásit.