The effects of selected family characteristics on
interrelated components of household asset portfolios over a
three-year time period were investigated. Specifically, this
study attempted to conceptually define mental accounts, to
identify own-adjustment and cross-adjustment characteristics
of these mental accounts, to explore influences of selected
family characteristics on these mental accounts, and to
examine substantial effects of income on family portfolio
behavior.
Based on the behavioral life-cycle hypothesis, consumer
demand theory, household production theory, and the stock
adjustment hypothesis, a family portfolio behavior model was
formulated for studying family saving behavior as reflected in
household asset portfolios. A tobit model was utilized to
estimate own- and cross-adjustment coefficients of the
portfolio components, and short-term and equilibrium effects
of family characteristics. The data were from the Survey of
Consumer Finances conducted in 1983 and 1986.
Findings strongly support the mental account hierarchy
hypothesis which was reflected in the own- and cross-adjustment
coefficients estimated. In addition, family income
and education of the household head showed positive influences
on various mental accounts. Age of the household head,
employment status, family life cycle stage, house mortgage,
home value, other assets, and other debts showed effects on
some mental accounts. Income had a substantial influence on
family portfolio behavior. The behavior of middle-income
families was more consistent with the hypothesis of a mental
account hierarchy than the other income groups, which implies
diverse preferences for asset characteristics and varying
financial needs of families at different income levels.
This study has contributed to the body of knowledge of
family saving behavior and increased the understanding of
adaptivity and dynamics of family saving behavior. The
research findings could be utilized by family finance
educators and consultants, financial service marketers, and
public policy makers in working successfully with different
family types, marketing various financial instruments, and
designing effective savings policies. In addition, this study
has provided empirical evidence to assess existing theoretical
models and to inspire the building of new theories. / Graduation date: 1992
| Identifer | oai:union.ndltd.org:ORGSU/oai:ir.library.oregonstate.edu:1957/36334 |
| Date | 23 July 1991 |
| Creators | Xiao, Jing-jian |
| Contributors | Olson, Gerladine I. |
| Source Sets | Oregon State University |
| Language | en_US |
| Detected Language | English |
| Type | Thesis/Dissertation |
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