Assistant Professor of Finance Elias Rantapuska’s paper accepted to the Journal of Finance
"Formative Experiences and Portfolio Choice: Evidence from the Finnish Great Depression", forthcoming in Journal of Finance.
The article , by Professor of Finance Samuli Knüpfer (BI Norwegian Business School), Assistant professor of Finance Elias Rantapuska (Aalto University, School of Business), and Senior Researcher Matti Sarvimäki (VATT, Institute for Economic Research) has been accepted for publication in the Journal of Finance. The paper investigates the long-run impact of the Finnish Great Depression on the investment of risky assets. Individuals who were exposed to adverse labor market consequences at the beginning of 1990’s are less likely to invest in risky securities 15 years later. These effects also propagate in social networks: individuals whose neighbours and family members experienced adverse circumstances also avoid risky investments.
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