Table 9:
Average Household EA Score and Portfolio Decisions
| Panel A Dep. Var: | Owns House | Owns Business | Owns Stocks | Owns House | Owns Business | Owns Stocks |
|---|---|---|---|---|---|---|
| [1] | [2] | [3] | [4] | [5] | [6] | |
| EA Score | 0.003 (0.008) | 0.005 (0.006) | 0.052*** (0.011) | −0.008 (0.008) | −0.001 (0.006) | 0.040*** (0.011) |
| Log Income | 0.033*** (0.008) | −0.004 (0.006) | 0.062*** (0.011) | 0.002 (0.008) | −0.021** (0.008) | 0.021 (0.013) |
| Lagged Log Wealth | 0.122*** (0.009) | 0.047*** (0.007) | 0.151*** (0.016) | |||
| Obs. | 6460 | 6460 | 5450 | 4649 | 4649 | 4196 |
| R2 | 0.304 | 0.160 | 0.348 | 0.399 | 0.217 | 0.435 |
| Mean outcome | 0.84 | 0.08 | 0.46 | 0.83 | 0.08 | 0.47 |
| Standard Controls | X | X | X | X | X | X |
| Principal Comp. | X | X | X | X | X | X |
| Full Educ. Controls | X | X | X | X | X | X |
| Panel B Dep. Var: Log Wealth | [1] | [2] | [3] | [4] | [5] | |
| EA Score | 0.049** (0.023) | 0.046** (0.021) | 0.046** (0.022) | 0.016 (0.021) | 0.018 (0.019) | |
| Owns Stocks | 0.624*** (0.034) | 0.507*** (0.029) | ||||
| Has Business | 0.594*** (0.049) | 0.530*** (0.044) | ||||
| Owns Home | 0.887*** (0.054) | 0.741*** (0.052) | ||||
| Obs. | 4912 | 4912 | 4912 | 4912 | 4912 | |
| R2 | 0.487 | 0.551 | 0.504 | 0.540 | 0.599 | |
| Standard Controls | X | X | X | X | X | |
| Principal Comp. | X | X | X | X | X | |
| Full Educ. Controls | X | X | X | X | X | |
| Log Income | X | X | X | X | X |
Notes: Panel A of this table presents estimates from regressions of indicators for ownership of different asset types on the EA score and various controls. Panel B presents estimates from regressions of log household wealth on the EA score, indicators for ownership of different asset types, and various controls. Significance stars ***, **, and * indicate statistical significance at the 0.01, 0.05, and 0.10 levels, respectively. Standard errors are clustered at the family level.