Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 2020 erstellt
Description:
We examine the distributional effects of access to a novel financial technology: automated asset management. A 90% reduction in minimum account size requirements by a major U.S. robo advisor increases participation in both asset management and the stock market by households from the middle quintiles of the U.S. wealth distribution. These households experience a 24 percentage point increase in risky share and a 1.9 percentage point increase in expected return relative to wealthier households. However, the reduction does not affect households from the poorest wealth quintile, suggesting that automated asset management has ambiguous effects on overall inequality in returns on wealth