Paper Title
Effects of the Financial Crisis on Household Financial Risky Assets Holdings: Empirical Evidence from European Countries

Abstract
Given that the willingness to bear financial risk may change, due to the impact of the financial crisis of 2008, the aim of this paper is to analyze the dynamic nature of holding of financial risky assets by households before and after this event. We use data from Wave 2 (2006–2007) and Wave 4 (2010–2011) of the Survey of Health, Ageing and Retirement in Europe (SHARE), which cover the time periods before and after the 2008 financial crisis, respectively. The dynamic results reveal that households with increased net wealth between these two periods are more (less) likely to demonstrate increased (decreased) probability of holding financial risky assets, compared to households without change in risky asset holdings over the two periods. Older households (aged over 65) are less likely to change their financial decisions regarding owning of risky assets. However, highly-educated households exhibit two different financial behaviors, either increased or decreased probability of owning risky assets, based on the experience of the financial crisis. We also find varying effects of the financial crisis among countries. Keywords - Dynamic Analysis; Risky Assets; Financial Crisis; European Countries; SHARE.