Are "risky assets" substitutes for "monetary assets"?
Research output: Contribution to journal › Article › peer-review
- University of California System
The paper uses an asymptotically ideal model to estimate substitution elasticities between financial assets held by the U.K. personal sector. An important innovation is to extend the range of assets to include "risky" assets as well as capital certain "monetary" assets. The most significant result is the evidence of substitution between "risky" assets and "cash" assets. Also, as risk aversion increases substitution between "risky" assets and "cash" assets generally falls.
|Number of pages||17|
|Publication status||Published - 1 Jan 1999|