Convergence and Divergence. A Comment on the Structure and Evolution of Household Financial Assets, 1995-2000
Daniele Fano, Head of PGAM Economic Research
This paper aims at deriving some first lessons from the contribution of André Babeau and Teresa Sbano. Household Wealth in the National Accounts of Europe, the United States and Japan.
The increasing risk propensity of households from 1995 to 2000 in all the countries examined except Japan is broadly confirmed and is explained not only by the market appreciation but also by new investment flows in equities and in equity related instruments. On the other side, as far as the investment instruments and vehicles are concerned, there is a clear lack of convergence.
This twin result (common greater risk propensity but no convergence on the instruments side) finds confirmation in other contributions carried out from different research angles and with reference to broader data sets.
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