Inflation risk represents one of the most important economic risks faced by investors. In this Quantitative History Webinar, Fabio Braggion of Tilburg University will present his paper cowritten with Felix von Meyerinck (St. Gallen) and Nic Schaub (WHU), exploring how investors respond to inflation. Fabio and his coauthors introduce a unique dataset containing security portfolios of more than 2,000 clients of a German bank between 1920 and 1924, covering the famous German hyperinflation. In a within-person setting and controlling for the overall time trend, they find that investors buy less (sell more) stocks in times of rising local prices. This effect is more pronounced for less sophisticated investors. Their findings are consistent with investors being subject to money illusion.
Live on Zoom on November 19, 2020
16:00 Hong Kong/Beijing/Singapore
17:00 Tokyo | 19:00 Sydney
08:00 London | 09:00 Tilburg
Photo credit: Bundesarchiv, Bild 183-R1215-506 / CC-BY-SA 3.0, CC BY-SA 3.0 DE <https://creativecommons.org/licenses/by-sa/3.0/de/deed.en>, via Wikimedia Commons
About the Quantitative History Webinar Series
The Quantitative History Webinar Series, convened by Professor Zhiwu Chen and Dr. Chicheng Ma of The University of Hong Kong (HKU), aims to provide researchers, teachers and students with an online intellectual platform to keep up to date with the latest research in the field, promoting the dissemination of research findings and interdisciplinary use of quantitative methods in historical research. The Series is co-organized by the International Society for Quantitative History, HKU Business School, and the Asia Global Institute (AGI).
Professor Zhiwu Chen
Dr. Chicheng Ma