Equity Holdings of Australian Baby Boomers-Comparing Life Cycle Phases

West, Tracey

doi:10.2478/fprj-2017-0010

Figures & Tables

Dependent Variable Descriptive Statistics

Parameter	Description	Sample Population				Baby Boomer Population
		2002		2014		2002		2014
		Mean	Standard Deviation	Mean	Standard Deviation	Mean	Standard Deviation	Mean	Standard Deviation
Generation category	Generation Y	0.030	0.171	0.252	0.434
	Generation X	0.321	0.467	0.307	0.461
	Baby Boomer generation	0.399	0.490	0.310	0.462
	Silent generation	0.207	0.406	0.126	0.332
	Greatest generation	0.041	0.199	0.006	0.077
Asset Class Ownership	Bank accounts	0.980	0.140	0.983	0.131	0.980	0.139	0.986	0.119
	Cash investments	0.032	0.176	0.012	0.110	0.024	0.154	0.012	0.107
	Equities (EQT_owner)	0.437	0.496	0.318	0.466	0.484	0.500	0.395	0.489
	Superannuation	0.808	0.394	0.871	0.336	0.931	0.281	0.890	0.313
Asset Class Ownership	Insurance	0.124	0.329	0.067	0.250	0.150	0.357	0.079	0.270
	Trusts	0.041	0.199	0.044	0.205	0.046	0.210	0.048	0.214
	Family home	0.721	0.448	0.663	0.473	0.785	0.411	0.797	0.403
	Other property	0.186	0.390	0.229	0.420	0.233	0.423	0.304	0.460
	Businesses	0.148	0.356	0.114	0.318	0.193	0.395	0.129	0.336
	Vehicles	0.912	0.284	0.930	0.255	0.941	0.235	0.959	0.198
	Collectibles	0.146	0.353	0.140	0.347	0.154	0.361	0.155	0.362
Asset Class Portfolio Share	Bank accounts	0.095	0.193	0.095	0.184	0.064	0.148	0.074	0.151
	Cash investments	0.003	0.027	0.001	0.019	0.002	0.019	0.001	0.011
	Equities (EQT_{portfolioshare})	0.039	0.104	0.023	0.080	0.032	0.084	0.024	0.074
	Superannuation	0.203	0.230	0.262	0.257	0.223	0.225	0.264	0.237
	Insurance	0.009	0.052	0.012	0.074	0.010	0.052	0.009	0.056
	Trusts	0.005	0.044	0.007	0.054	0.004	0.041	0.005	0.043
	Family home	0.422	0.332	0.389	0.334	0.441	0.309	0.424	0.295
	Other property	0.060	0.156	0.084	0.183	0.073	0.165	0.099	0.183
	Businesses	0.035	0.126	0.019	0.086	0.044	0.136	0.019	0.082
	Vehicles	0.118	0.198	0.101	0.182	0.099	0.175	0.074	0.162
	Collectibles	0.011	0.061	0.008	0.053	0.009	0.051	0.006	0.041

Independent Dummy Variables, Descriptive Statistics, Baby Boomer Cohort

Parameter	Description	Variable sign	Expected sign	2002		2014
Parameter	Description	Variable sign	Expected sign	Mean	Standard Deviation	Mean	Standard Deviation
Gender	Female=1	FEM	–	0.524	0.499	0.529	0.499
Gender	Male=1^#	MAL	+	0.476	0.499	0.471	0.499
Household structure	Couples with children=1^#	CWC	+	0.577	0.494	0.321	0.467
	Lone parents=1	LPC	–	0.097	0.296	0.079	0.269
	Lone person=1	LNP	–	0.117	0.321	0.164	0.370
	Couple=1	CPL	+	0.192	0.394	0.415	0.493
	Multi-family/Other=1	MFO	–	0.017	0.130	0.022	0.146
Education category	Bachelor’s degree and above=1	DEG	+	0.235	0.424	0.263	0.440
	Vocational qualification=1	VOC	–	0.300	0.458	0.358	0.479
	Year 12^#=1	Y12	–	0.113	0.316	0.091	0.287
	Year 11=1	Y11	–	0.353	0.478	0.288	0.453
Health	Excellent health=1	EHT	+	0.098	0.298	0.063	0.243
	Very good health=1	VHT	+	0.343	0.475	0.300	0.458
	Good health^#=1	GHT	–	0.334	0.472	0.357	0.479
	Fair health=1	FHT	–	0.116	0.320	0.162	0.368
	Poor health=1	PHT	–	0.027	0.162	0.042	0.200
Household income	<$20,000=1	INC1	–	0.042	0.201	0.037	0.188
	$20,000 to $49,999=1	INC2	–	0.152	0.359	0.183	0.386
	$50,000 to $99,999^#=1	INC3	+	0.348	0.477	0.268	0.443
	>$100,000=1	INC4	+	0.458	0.498	0.513	0.500
Net wealth	Under $499,999=1	NW1	–	0.649	0.477	0.335	0.472
	$500,000-$999,999^#=1	NW2	+	0.217	0.412	0.263	0.440
	$1,000,000-$1,499,999=1	NW3	+	0.061	0.239	0.152	0.359
	Above $1,500,000=1	NW4	+	0.047	0.211	0.231	0.422

Independent Financial Literacy Variables, Descriptive Statistics, Baby Boomer Cohort

Parameter	Description	Variable sign	Expected sign	2002
Parameter	Description	Variable sign	Expected sign	Mean	Standard Deviation
Financial risk prepared to take	Takes substantial financial risks expecting substantial financial returns	FIR	+	0.014	0.012
	Takes above average financial risks expecting above average financial returns		+	0.079	0.058
	Takes average financial risks expecting average financial returns		–	0.376	0.409
	Not willing to take financial risks		–	0.332	0.384
	Never has any spare cash		–	0.199	0.138
Savings habits	Don’t save: Usually spend more than income	FIS	–	0.061	0.052
	Don’t save: Usually spend about as much as income		–	0.261	0.172
	Save whatever is left over–no regular savings plan		–	0.389	0.432
	Spend regular income, save other income		–	0.069	0.077
	Save regularly by putting money aside		+	0.219	0.268
Investment horizon	The next week	FIH	–	0.195	0.194
	The next few months		–	0.230	0.246
	The next year		–	0.169	0.175
	The next 2 to 4 years		+	0.128	0.129
	The next 5 to 10 years		+	0.177	0.170
	More than 10 years ahead		+	0.101	0.086

Tobit Regression Results for EQTportfolioshare, Baby Boomer Cohort

Variable	2002			2014
Variable	Coefficient	Robust standard error	p-values	Coefficient	Robust standard error	p-values
FEM	0.007	0.004	0.116	0.002	0.005	0.673
LPC	0.008	0.009	0.384	0.013	0.013	0.315
LNP	0.006	0.009	0.530	0.019	0.008	0.023
CPL	0.025	0.005	0.000	0.010	0.005	0.050
MFO	-0.036	0.017	0.038	-0.007	0.016	0.642
DEG	0.000	0.008	0.961	0.001	0.008	0.899
VOC	0.002	0.007	0.825	0.003	0.008	0.746
Y11	-0.013	0.007	0.078	0.000	0.009	0.986
EHT	0.006	0.007	0.403	0.002	0.008	0.806
VHT	0.003	0.005	0.467	0.002	0.005	0.659
FHT	-0.001	0.008	0.901	0.009	0.007	0.200
PHT	0.010	0.020	0.622	0.009	0.017	0.601
INC1	-0.024	0.018	0.177	-0.017	0.019	0.366
INC2	-0.012	0.008	0.131	-0.019	0.008	0.014
INC4	0.006	0.005	0.209	-0.002	0.006	0.681
NW1	-0.042	0.005	0.000	-0.049	0.007	0.000
NW3	0.033	0.009	0.000	0.029	0.006	0.000
NW4	0.058	0.013	0.000	0.074	0.007	0.000
FIS	0.003	0.002	0.084	0.006	0.002	0.003
FIH	0.005	0.001	0.000	0.004	0.002	0.006
FIR	-0.033	0.003	0.000	-0.026	0.003	0.000
Constant	0.077	0.016	0.000	-0.014	0.017	0.428
Number of observations	4725			4914
F statistic	21.450	0.000		19.170	0.000
Log Psedolikelihood	370.416			-25.887
Pseudo R2	7.112			0.941

Logit Regression Results for EQTowner, Baby Boomer Cohort

Variable	2002			2014
Variable	Coefficient	Robust standard error	p-values	Coefficient	Robust standard error	p-values
FEM	0.127	0.070	0.069	0.074	0.068	0.278
LPC	-0.302	0.122	0.013	-0.309	0.153	0.043
LNP	-0.304	0.120	0.011	0.014	0.116	0.906
CPL	0.250	0.088	0.004	-0.006	0.079	0.940
MFO	-0.759	0.287	0.008	-0.167	0.243	0.493
DEG	0.108	0.122	0.373	-0.113	0.128	0.379
VOC	0.030	0.118	0.801	0.019	0.124	0.880
Y11	-0.145	0.115	0.206	-0.103	0.129	0.424
EHT	0.090	0.116	0.437	0.030	0.130	0.815
VHT	0.065	0.076	0.395	-0.013	0.077	0.869
FHT	-0.081	0.111	0.470	-0.011	0.100	0.912
PHT	-0.390	0.235	0.096	-0.336	0.197	0.089
INC1	-0.845	0.219	0.000	-0.403	0.219	0.066
INC2	-0.376	0.107	0.000	-0.261	0.108	0.016
INC4	0.241	0.077	0.002	0.063	0.084	0.452
NW1	-0.808	0.079	0.000	-0.963	0.092	0.000
NW3	0.744	0.180	0.000	0.454	0.096	0.000
NW4	0.678	0.207	0.001	0.986	0.092	0.000
FIS	0.057	0.030	0.058	0.123	0.030	0.000
FIH	0.091	0.023	0.000	0.041	0.023	0.079
FIR	-0.494	0.043	0.000	-0.391	0.047	0.000
Constant	1.703	0.251	0.000	0.462	0.258	0.073
Number of observations	4725			4914
Wald Chi2	846.910	0.000		837.430	0.000
Log Psedolikelihood	-2714.409			-2781.297
Pseudo R2	0.171			0.162

Equity Holdings of Australian Baby Boomers-Comparing Life Cycle Phases

Figures & Tables

Dependent Variable Descriptive Statistics

Independent Dummy Variables, Descriptive Statistics, Baby Boomer Cohort

Independent Financial Literacy Variables, Descriptive Statistics, Baby Boomer Cohort

Tobit Regression Results for EQTportfolioshare, Baby Boomer Cohort

Logit Regression Results for EQTowner, Baby Boomer Cohort

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