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Household saving behavior, portfolio choice and children : evidence from the Survey of consumer finances
textUsing the Survey of Consumer Finances (SCF), this dissertation examines
the relationship between having children and the motives of saving: (i)
to hold assets because of the return they provide, (ii) to build up reserves as
a precaution for a ‘rainy day,’ and (iii) to accumulate for anticipated future
needs, such as educational expenses.
The first chapter examines how the number of children living in the
household affects the way households allocate their wealth across different
assets, such as owner-occupied housing, risky assets and interest-bearing accounts.
The portfolio allocation of homeowners is compared to that of renters
by taking into account the portfolio constraint imposed by the consumption
demand for housing. The results show that the number of children increases
the housing consumption of homeowners and the share of the portfolio allocated
to owner-occupied housing. As a result of the portfolio constraint,
homeowners decrease the share of the portfolio invested in retirement assets
as the number of children increases.
Using a life-cycle model that incorporates precautionary motives for
saving, the second chapter investigates the relationship between household
saving and fertility decisions. By examining the implications of income uncertainty
on the demand for children, this chapter extends the empirical work on
precautionary savings. The results show that households with higher income
uncertainty are less likely to have a child, and after controlling for family size,
income uncertainty has little effect on household savings. Further, having an
additional child reduces savings of households with young heads and increases
savings of those with older heads.
The third chapter examines the effect of financing children’s college education
on household savings. Using the actual college expenditures reported
in the 1983-86 SCF, the empirical model estimates the expected expenditures
on children’s college education and investigates the effect of expected college
expenses on household savings. The results show that parents save for college
expenses of their children. Also, savings for college increase with the age of
the household head. The results are consistent with the predictions the lifecycle
theory of saving that households save in advance for expected expenses
to smooth their consumption.Economic
Marriage and the Allocation of Assets in Women’s Defined Contribution Plans
Gender, Financial decision-making, Investment choice, Risk aversion,
The Use of Owner Resources in Small and Family Owned Businesses: Literature Review and Future Research Directions
Family business, Financial bootstrapping, Financial intermingling, Owner resources, Small business, Sustainable Family Business Model,
A Multistage Model of Loans and the Role of Relationships
"We develop a multistage model of the loan granting process to understand the contradictory findings of the existing literature on bank-borrower relationships, credit availability, and loan rates. Upon estimating our model with the 1993, 1998, and 2003 versions of the Survey of Small Business Finances data set, we find that relationships matter in a borrower's decision whether to apply for a loan and in the loan approval/rejection decision by the financial institution. However, the effect of relationships on loan rates depends on the prevailing economic climate. While firms with preexisting relationships obtain credit at lower rates during periods of economic expansion, loan rates are not negatively correlated with preexisting relationships during periods of economic recession." Copyright (c) 2009 Financial Management Association International.
The determinants of consumers’ adoption of Internet banking
Bills have traditionally been paid by writing checks and sending them with statements by U.S. mail. Increasingly, bills are being paid by automated clearinghouse debits. More recently, the Internet has created new bill payment methods such as online banking and online credit card payments. These new options offer consumers convenience, speed, and the ability to better control payment timing. How do consumers decide whether or not to adopt different forms of bill payment? Are the same consumers using different methods depending on the type of bill or the amount? Will check ever disappear as a bill payment method? Tansel Yilmazer will begin this session with a summary of “The Determinants of Consumers’ Adoption of Internet Banking."Payment systems ; Internet banking