Welcome to Skatteforsk - Centre for Tax Research's second April seminar!
This time, we are excited to host Ana Melissa Ferreira, PhD candidate at Nova School of Economics and Business, who will present her paper titled Monetary Policy & Household Portfolio Composition. The seminar takes place in Tårnbygningen, room T316, from 11:15-12:00, Thursday 10th of April.
The seminar is open, and everyone is welcome to join. We hope to see you there! You can join us digitally through the teams-link below:
Meeting ID: 331 008 309 362
Passcode: jk6b5DF9
Title: Monetary policy & Household Portfolio Composition
Authors: Tiago Bernardino, Pedro Brinca, Ana Melissa Ferreira, Hans A. Holter, Mariana N. Pires, and Luís Teles Morais.
Abstract: How does monetary policy affect household portfolio composition? Resorting to highly granular data on the balance sheets of Norwegian households from 1993 to 2016, we analyze how their wealth portfolios change in response to well-defined monetary policy shocks. We document three empirical facts after a 1 percentage point increase in the policy rate. First, the total value of households' portfolios decreases by 4.1% two years after the shock. Second, monetary policy tightening decreases the risk exposure of portfolios, in particular the value of stocks, bonds, and mutual funds. Third, stock market participation is unaffected by monetary policy but those who already own stocks increase their holdings.