How Children with Mental Disabilities Affect Household Investment Decisions

Vicki L. Bogan; Jose M. Fernandez

doi:10.1257/aer.p20171145

How Children with Mental Disabilities Affect Household Investment Decisions

Vicki L. Bogan¹; Jose M. Fernandez²

¹ Cornell University, 201K Warren Hall, Ithaca, NY 14853 (e-mail: ) · ² University of Louisville, Louisville, KY 40292 (e-mail: )

American Economic Review 2017

We analyze how children with mental disabilities influence parental portfolio allocation. We find that risky asset holding decreases among households with special needs children. However, conditional on participating in financial markets, households with special needs children invest a larger portion of their wealth in risky assets. As risky asset holding is a key component of wealth building, these findings have important implications for both policy and household wealth inequality.

DOI: 10.1257/aer.p20171145
Volume: 107 (5)
Pages: 536-540
Language: en
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