Credit Scores, Trust, and Stock Market Participation

Posted: 30 Oct 2015

See all articles by Jesse Bricker

Jesse Bricker

Board of Governors of the Federal Reserve System

Geng Li

Board of Governors of the Federal Reserve System

Date Written: October 1, 2015

Abstract

Investments in stocks earn a substantially higher return than investment in safer assets in the long run, even after adjusting for risks in the stock market. However, not all households own stocks (Mankiw and Zeldes, 1991), and the share of U.S. households that invest in stocks has been much lower than the standard theory predicts--a phenomenon often referred to as the "participation puzzle."

Suggested Citation

Bricker, Jesse and Li, Geng, Credit Scores, Trust, and Stock Market Participation (October 1, 2015). FEDS Notes No. 2015-10-01-1 https://doi.org/10.17016/2380-7172.1588, Available at SSRN: https://ssrn.com/abstract=3721636

Jesse Bricker (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Geng Li

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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