Discussion Papers no. 946
Broadband internet and the stock market investments of individual investors
We study the effects of broadband internet use on the portfolio selection of individual investors.
A public program in Norway provides plausibly exogenous variation in internet use. Our instrumental variables estimates show that internet use causes a substantial increase in stock market participation, driven primarily by increased fund ownership. Existing investors increase the fraction of their portfolios held in funds and do not increase their trading activity in stocks. Access to fast internet seems to induce individual investors to make better financial decisions and hence leads to a “democratization of finance”
About the publication
- Title
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Broadband internet and the stock market investments of individual investors
- Author
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Hans K. Hvide, Tom G. Meling, Magne Mogstad, and Ola L. Vestad
- Series and number
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Discussion Papers no. 946
- Publisher
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Statistisk sentralbyrå
- Topic
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Discussion Papers
- ISSN
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1892-753X
- About Discussion Papers
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Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.
Contact
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Statistics Norway's Information Centre