Households’ Portfolio Structure in Germany - Analysis of Financial Accounts Data 1959-2009

25 Pages Posted: 22 Jul 2010

See all articles by Michael Scharnagl

Michael Scharnagl

Deutsche Bundesbank

Fred Ramb

Deutsche Bundesbank, Economics Department, Monetary Policy and Monetary Analysis

Date Written: July 21, 2010

Abstract

Based on a Financial Almost Ideal Demand System (FAIDS), this paper investigates the wealth structure of German households. The long-run wealth elasticities and interest-rate elasticities were calculated using a unique new financial accounts macro-data set which covers the period from 1959 to 2009 and contains a portfolio of eight different financial assets. We found that portfolio shifts in the long run are mainly determined by changes in interest rates. Furthermore, the estimated model provides evidence that currency (and transferable deposits) is mainly a substitute for other assets and that time deposits are typically a complement.

Keywords: Financial wealth, portfolio structure, household

JEL Classification: E21, G11, C32

Suggested Citation

Scharnagl, Michael and Ramb, Fred, Households’ Portfolio Structure in Germany - Analysis of Financial Accounts Data 1959-2009 (July 21, 2010). Available at SSRN: https://ssrn.com/abstract=1646344 or http://dx.doi.org/10.2139/ssrn.1646344

Michael Scharnagl

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Fred Ramb (Contact Author)

Deutsche Bundesbank, Economics Department, Monetary Policy and Monetary Analysis ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany
++49-69-9566-2809 (Phone)

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