Stockholm School of Economics

About: Stockholm School of Economics is a education organization based out in Stockholm, Sweden. It is known for research contribution in the topics: Population & Entrepreneurship. The organization has 1186 authors who have published 4891 publications receiving 285543 citations. The organization is also known as: Stockholm Business School & Handelshögskolan i Stockholm.

Hedging Housing Risk

Abstract: An unusually rich source of data on housing prices in Stockholm is used to analyze the investment implications of housing choices. This empirical analysis derives market-wide price and return series for housing investment during a 13-year period, and it also provides estimates of the individual-specific, idiosyncratic, variation in housing returns. Because the idiosyncratic component follows an autocorrelated process, the analysis of portfolio choice is dependent upon the holding period. We analyze the composition of household investment portfolios containing housing, common stocks, stocks in real estate holding companies, bonds, and t-bills. For short holding periods, the efficient portfolio contains essentially no housing. For longer periods, low-risk portfolios contain 15 to 50 percent housing. These results suggest that there are large potential gains from policies or institutions that would permit households to hedge their lumpy investments in housing. We estimate the potential value of hedges in reducing risk to households, yet yielding the same investment returns. The value is surprisingly large, especially to poorer homeowners.

Knowledge and Risk Perception Among Nuclear Power Plant Employees

Abstract: This is a study of knowledge, risk perception, and attitudes among nuclear power plant employees. A total of 236 persons participated, belonging to 10 different professional groups and working at two Swedish power plants. Job-related radiation risks were judged about average as compared to a number of other risks. On the whole, the participants in the study were satisfied with the measures of safety at work, but there were some exceptions to this rule, especially among those hired for temporary jobs through external contractors. The experience of job-related radiation risks was related to the level of knowledge about radiation and its risks: those who knew less experienced larger risks. General level of anxiety did not correlate with risk perception. The latter was accounted for mainly by perceived radiation risks. Job satisfaction was more strongly related to perceived conventional job risks than to nuclear risks. Risk ratings were related to how subjects defined the concept of risk. Those who stressed consequences as part of their risk definition gave higher risk ratings.

Fintech, financial inclusion and income inequality: a quantile regression approach

Abstract: Although theory suggests that financial market imperfections – mainly information asymmetries, market segmentation and transaction costs – prevent poor people from escaping poverty by limiting thei...

Capacity Constraints and Hedge Fund Strategy Returns

Abstract: Hedge funds have generated significant absolute returns (alpha) in the decade between 1995 and 2004. However, the level of alpha has declined substantially over this period. We investigate whether capacity constraints at the level of hedge fund strategies have been responsible for this decline. For four out of eight hedge fund strategies, capital inflows have statistically preceded negative movements in alpha, consistent with this hypothesis. We also find evidence that hedge fund fees have increased over the same period. Our results provide support for the Berk and Green (2004) rational model of active portfolio management.