The Choice Channel of Financial Innovation

نویسندگان

چکیده

Financial innovation in recent decades has expanded portfolio choice. We investigate how greater choice affects investors’ savings and asset returns. establish a channel by which increases savings—by enabling them to earn the aggregate risk premium or take speculative positions. In equilibrium, customization (access risky assets beyond market portfolio) reduces risk-free rate. Participation but typically Empirically, stock participants United States save more than nonparticipants have increasingly dispersed returns, consistent with channel. (JEL E21, G11, G12, G51)

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ژورنال

عنوان ژورنال: American Economic Journal: Macroeconomics

سال: 2021

ISSN: ['1945-7707', '1945-7715']

DOI: https://doi.org/10.1257/mac.20180429