| 1. |
- Briggs, Joseph S., et al.
(författare)
-
Windfall gains and stock market participation
- 2015
-
Rapport (övrigt vetenskapligt/konstnärligt)abstract
- We estimate the causal effect of wealth on stock market participation using administrative data on Swedish lottery players. A $150,000 windfall gain increases stock ownership probability among pre-lottery non-participants by 12 percentage points, while pre-lottery stock holders are unaffected. The effect is immediate, seemingly permanent and heterogeneous in intuitive ways. Standard lifecycle models predict wealth effects far too large to match our causal estimates under common calibrations. Additional analyses suggest a limited role for explanations such as procrastination or real-estate investment. Overall, results suggest that “nonstandard” beliefs or preferences contribute to the nonparticipation of households across many demographic groups.
|
|
| 2. |
- Briggs, Joseph, et al.
(författare)
-
Wealth and Stock Market Participation : Estimating the Causal Effect From Swedish Lotteries
- 2015
-
Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- In this paper we estimate the causal effect of wealth on stock market participation. The positive cross-sectional relationship between participation and wealth is well-established, with previous work suggesting that moderate costs of stock market participation are capable of rationalizing the decision of most non-participants. In our study we use a large sample of Swedish lottery players whom were randomly assigned over 1 billion USD, linked to administrative tax records of asset holdings, to precisely identify both the effect of wealth and the costs necessary to explain non-participation. Although we estimate a positive effect of wealth on participation, our estimate is much smaller than that implied by the cross-section. Furthermore, our estimates of participation costs are 10-20 times higher than those proposed in previous studies. We interpret these results within a structural model of life-cycle stock market participation, and use participation responses following random wealth assignment to estimate entry and participation costs conditional on a variety of demographic and individual characteristics. We conclude that it is unlikely that fixed financial costs are credible explanations for equity market non-participation.
|
|
| 3. |
- Briggs, Joseph, et al.
(författare)
-
Windfall gains and stock market participation
- 2021
-
Ingår i: Journal of Financial Economics. - : Elsevier BV. - 0304-405X .- 1879-2774. ; 139:1, s. 57-83
-
Tidskriftsartikel (refereegranskat)abstract
- We exploit the randomized assignment of lottery prizes in a large administrative Swedish data set to estimate the causal effect of wealth on stock market participation. A $150,00 0 windfall gain increases the stock market participation probability by 12 percentage points among prelottery nonparticipants but has no discernible effect on prelottery stock owners. A structural life cycle model significantly overpredicts entry rates even for very high entry costs (up to $31,0 00). Additional analyses implicate pessimistic beliefs regarding equity returns as a major source of this overprediction and suggest that both recent and early-life return realizations affect beliefs.
|
|
| 4. |
- Cesarini, David, et al.
(författare)
-
Pocketbook Politics : The Impact of Wealth on Political Preferences and Participation
- 2024
-
Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- The rich tend to support policies favoring the affluent and are over-represented among both voters and legislators. This paper investigates whether these correlations reflect causal effects of wealth by leveraging random, positive wealth shocks in the form of lottery prizes. Compared to suitably matched controls, large-prize winners are no more likely to cast votes in national elections or run for political office. We also find no significant effects of parents’ lottery winnings on their children’s political participation. But winners of large lottery prizes become more negative toward taxes on wealth, real estate and inheritances. Although we do not detect any statistically significant effects on other political preferences, effects tend to go in the direction of a more right-wing political orientation. We find no evidence that lottery wealth changes moral values or strengthen beliefs in the importance of hard work for success in life.
|
|
| 5. |
- Cesarini, David, et al.
(författare)
-
Replication data for : The Effect of Wealth on Individual and Household Labor Supply: Evidence from Swedish Lotteries
- 2017
-
Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- We study the effect of wealth on labor supply using the randomized assignment of monetary prizes in a large sample of Swedish lottery players. Winning a lottery prize modestly reduces earnings, with the reduction being immediate, persistent, and quite similar by age, education, and sex. A calibrated dynamic model implies lifetime marginal propensities to earn out of unearned income from -0.17 at age 20 to -0.04 at age 60, and labor supply elasticities in the lower range of previously reported estimates. The earnings response is stronger for winners than their spouses, which is inconsistent with unitary household labor supply models.
|
|
| 6. |
- Cesarini, David, et al.
(författare)
-
The effect of wealth on household labor supply : evidence from Swedish lotteries
- 2015
-
Rapport (övrigt vetenskapligt/konstnärligt)abstract
- We study the effect of wealth on labor supply using the randomized assignment of monetary prizes in a large sample of Swedish lottery players. We find winning a lottery prize modestly reduces labor earnings, with the reduction being immediate, persistent, and similar by age, education, and sex. A calibrated dynamic model of individual labor supply implies an average lifetime marginal propensity to earn out of unearned income of -0.11, and labor-supply elasticities in the lower range of previously reported estimates. The earnings response is stronger for winners than their spouses, which is inconsistent with unitary household labor supply models.
|
|
| 7. |
- Cesarini, David, et al.
(författare)
-
The Effect of Wealth on Individual and Household Labor Supply : Evidence from Swedish Lotteries
- 2017
-
Ingår i: The American Economic Review. - : American Economic Association. - 0002-8282 .- 1944-7981. ; 107:12, s. 3917-3946
-
Tidskriftsartikel (refereegranskat)abstract
- We study the effect of wealth on labor supply using the randomized assignment of monetary prizes in a large sample of Swedish lottery players. Winning a lottery prize modestly reduces earnings, with the reduction being immediate, persistent, and quite similar by age, education, and sex. A calibrated dynamic model implies lifetime marginal propensities to earn out of unearned income from -0.17 at age 20 to -0.04 at age 60, and labor supply elasticities in the lower range of previously reported estimates. The earnings response is stronger for winners than their spouses, which is inconsistent with unitary household labor supply models.
|
|
| 8. |
- Cesarini, David, et al.
(författare)
-
The Effect of Wealth on Individual and Household Labor Supply : Evidence from Swedish Lotteries
- 2015
-
Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- We study the effect of wealth on labor supply using the randomized assignment of monetary prizes in a large sample of Swedish lottery players. We find winning a lottery prize modestly reduces labor earnings, with the reduction being immediate, persistent, and similar by age, education, and sex. A calibrated dynamic model of individual labor supply implies an average lifetime marginal propensity to earn out of unearned income of -0.11, and labor-supply elasticities in the lower range of previously reported estimates. The earnings response is stronger for winners than their spouses, which is inconsistent with unitary household labor supply models.
|
|
| 9. |
- Cesarini, David, et al.
(författare)
-
Wealth, Health, and Child Development : Evidence from Administrative Data on Swedish Lottery Players
- 2015
-
Rapport (övrigt vetenskapligt/konstnärligt)abstract
- We use administrative data on Swedish lottery players to estimate the causal impact of substantial wealth shocks on players' own health and their children's health and developmental outcomes. Our estimation sample is large, virtually free of attrition, and allows us to control for the factors conditional on which the prizes were randomly assigned. In adults, we find no evidence that wealth impacts mortality or health care utilization, with the possible exception of a small reduction in the consumption of mental health drugs. Our estimates allow us to rule out effects on 10-year mortality one sixth as large as the cross-sectional wealth-mortality gradient. In our intergenerational analyses, we find that wealth increases children's health care utilization in the years following the lottery and may also reduce obesity risk. The effects on most other child outcomes, which include drug consumption, scholastic performance, and skills, can usually be bounded to a tight interval around zero. Overall, our findings suggest that in affluent countries with extensive social safety nets, causal effects of wealth are not a major source of the wealth-mortality gradients, nor of the observed relationships between child-developmental outcomes and household income.
|
|
| 10. |
- Cesarini, David, et al.
(författare)
-
WEALTH, HEALTH, AND CHILD DEVELOPMENT : EVIDENCE FROM ADMINISTRATIVE DATA ON SWEDISH LOTTERY PLAYERS
- 2016
-
Ingår i: Quarterly Journal of Economics. - : Oxford University Press (OUP). - 0033-5533 .- 1531-4650. ; 131:2, s. 687-738
-
Tidskriftsartikel (refereegranskat)abstract
- We use administrative data on Swedish lottery players to estimate the causal impact of substantial wealth shocks on players' own health and their children's health and developmental outcomes. Our estimation sample is large, virtually free of attrition, and allows us to control for the factors conditional on which the prizes were randomly assigned. In adults, we find no evidence that wealth impacts mortality or health care utilization, with the possible exception of a small reduction in the consumption of mental health drugs. Our estimates allow us to rule out effects on 10-year mortality one sixth as large as the cross-sectional wealth-mortality gradient. In our intergenerational analyses, we find that wealth increases children's health care utilization in the years following the lottery and may also reduce obesity risk. The effects on most other child outcomes, including drug consumption, scholastic performance, and skills, can usually be bounded to a tight interval around zero. Overall, our findings suggest that in affluent countries with extensive social safety nets, causal effects of wealth are not a major source of the wealth-mortality gradients, nor of the observed relationships between child developmental outcomes and household income.
|
|
