Behavioral Household Finance

By John Beshears, James J. Choi, David Laibson, B. Madrian. 2018

125 citations recorded by the source corpus.

This chapter provides an overview of household finance. The first part summarizes key facts regarding household financial behavior, emphasizing empirical regularities that are inconsistent with the standard classical economic model and discussing extensions of the classical model and explanations grounded in behavioral economics that can account for the observed patterns. This part covers five topics: consumption and savings, borrowing, payments, asset allocation, and insurance. The second part addresses interventions that firms, governments, and other parties deploy to shape household financial outcomes: education and information, peer effects and social influence, product design, advice and disclosure, choice architecture, and interventions that directly target prices or quantities.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/fcf22a8de90838c11028a0e6bd561ad7b5e69a66

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In Accounting

Nicholas Barberis

In Economics and Econometrics

In Finance

Citations in the corpus

Psychology-based Models of Asset Prices and Trading Volume (2018, background): “…findings called for a new generation of models – for 1The models of asset prices and volume that I discuss also make predictions about individual portfolio choice, but I do not cover that topic in much detail; for a fuller treatment of it, see Guiso and Sodini (2013) and Beshears et al. (2018).”