Ownership of stocks and mutual funds: A panel data analysis

Rob Alessie*, Stefan Hochguertel, Arthur Van Soest

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review

75 Citations (Scopus)


This paper analyzes the ownership dynamics of stocks and mutual funds, using representative household panel data, the Dutch CentER Savings Survey 1993-1998. A bivariate dynamic binary-choice model is introduced, allowing for interactions between the two types of assets. We find that unobserved heterogeneity and state dependence play a large role for both types of assets. The positive relation between ownership of one type in one period and the other type in the next period is explained by correlated unobserved heterogeneity. A negative state-dependence effect of lagged ownership of stocks on ownership of mutual funds is found, which can be explained by the costs of shifting funds across the two forms of stockholding.

Original languageEnglish
Pages (from-to)783-796
Number of pages14
JournalReview of Economics and Statistics
Issue number3
Publication statusPublished - Aug-2004
Externally publishedYes


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