Warianty tytułu
Języki publikacji
Abstrakty
Prize-linked savings (PLS) instruments implement the lottery-like component into the structure of traditional financial products. Following existing research based on both real and experimental data, such programs appeared highly successful in raising the overall savings rates within the given environments. PLS accounts seem to be treated by decision-makers as substitutes to ordinary lotteries, but this does not hold when comparing PLS with traditional interest-bearing savings products. This paper explains such empirical observations in a framework of portfolio selection problem. For that purpose, two models have been presented and used for deriving optimal portfolios in a presence of PLS, lottery and savings products. As shown in the analysis, the standard mean-variance model does not allow for a PLS instrument to be of optimum choice, whereas in the case of behavioural portfolio model allocating all disposable income (original abstract)
Czasopismo
Rocznik
Numer
Strony
195--208
Opis fizyczny
Twórcy
autor
- City University London,
Bibliografia
- Atalay K., Bakhtiar F., Cheung S., Slonim R., 2014, Savings and prize-linked savings accounts, Journal of Economic Behavior and Organization, Vol.107, pp.86-106
- Cole S.A., Iverson B.C., Tufano P., 2014, Can gambling increase savings? Empirical evidence on prize-linked savings accounts, working paper
- Friedman M., Savage L.J., 1948, The utility analysis of choices involving risk, Journal of Political Economy, Vol.56, pp.279-304
- Kahneman D., Tversky A., 1979, Prospect theory: An analysis of decision making under risk, Econometrica, 47, pp.263-291
- Kearney M.S., Tufano P., Guryan J., Hurst E., 2010, Making savers winners: An overview of prize-linked savings products, National Bureau of Economic Research, w16433
- Lopes L., 1987, Between hope and fear: The psychology of risk, Advances in Experimental Social Psychology, Vol.20, pp.255-295
- Markowitz H., 1952, Portfolio selection, Journal of Finance, Vol.7(1), pp.77-91
- National Savings and Investments, 2015, Annual report and accounts and product accounts 2014-15
- Roy A.D., 1952, Safety first and the holding of assets, Econometrica, Vol.20(3), pp.431-449
- Shefrin H., Statman M., 2000, Behavioral portfolio theory, Journal of Financial and Quantitative Analysis, Vol.35(2), pp.127-151
- Von Neumann J., Morgenstern O., 1944, Theory of games and economic behavior, Princeton University Press
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171421200