Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 11, 2022 erstellt
Description:
We provide the first comprehensive tests in the household finance literature of why individuals invest in deposits, for many their largest and sometimes only financial asset. Our findings are threefold. Using detailed register data covering every individual in Denmark we first show that people actively readjust their deposits following an exogenous increase, as captured by unexpected inheritances. Second, we find that people use deposits and voluntary unemployment insurance as substitutes. Finally, interest rates paid on deposits do not drive deposit demand. Collectively, these results support that people hold deposits primarily for precautionary reasons