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@article{ART002731494},
author={Kim, Jeehye and Chungyu Park},
title={The Measure of Risk Aversion and Housing Asset Allocation},
journal={The Korea Spatial Planning Review},
issn={1229-8638},
year={2021},
volume={109},
pages={53-72},
doi={10.15793/kspr.2021.109..004}

TY - JOUR
AU - Kim, Jeehye
AU - Chungyu Park
TI - The Measure of Risk Aversion and Housing Asset Allocation
JO - The Korea Spatial Planning Review
PY - 2021
VL - 109
IS - null
PB - 국토연구원
SP - 53
EP - 72
SN - 1229-8638
AB - Based on portfolio theory, this study derived an optimal portfolio including housing assets by investor characteristics. In particular, the study focused on classifying investor types into age, income, assets, home ownership, multiple homeowners and residential areas, and analyzing the differences between the risk aversion coefficient and optimal asset allocation for each characteristic. An analysis of the risk aversion coefficient in this study showed that Korean investors have relatively risk-taking behaviors with lower risk aversion coefficient than other countries’ investors. It was found that the lower the age, the more assets, the higher the income, and the lower the risk aversion coefficient. On average, the optimal portfolio include 33.46 percent risk-free assets, 60.34 percent apartments, and 6.21 percent stocks. An investor with lower risk aversion holds on average a much larger proportion of their wealth in risky-assets. Recently, low interest rates and ample liquidity have led to a rise in housing prices worldwide including in Korea. In terms of demand, it is believed that housing is a relatively less risky asset, and that risk-taking behavior has also affected the rise in housing prices in Korea.
KW - Risk Aversion;Housing Asset;Optimal Asset Allocation;Optimal Risk Portfolio
DO - 10.15793/kspr.2021.109..004
ER -

Kim, Jeehye and Chungyu Park. (2021). The Measure of Risk Aversion and Housing Asset Allocation. The Korea Spatial Planning Review, 109, 53-72.

Kim, Jeehye and Chungyu Park. 2021, "The Measure of Risk Aversion and Housing Asset Allocation", The Korea Spatial Planning Review, vol.109, pp.53-72. Available from: doi:10.15793/kspr.2021.109..004

Kim, Jeehye, Chungyu Park "The Measure of Risk Aversion and Housing Asset Allocation" The Korea Spatial Planning Review 109 pp.53-72 (2021) : 53.

Kim, Jeehye, Chungyu Park. The Measure of Risk Aversion and Housing Asset Allocation. 2021; 109 53-72. Available from: doi:10.15793/kspr.2021.109..004

Kim, Jeehye and Chungyu Park. "The Measure of Risk Aversion and Housing Asset Allocation" The Korea Spatial Planning Review 109(2021) : 53-72.doi: 10.15793/kspr.2021.109..004

Kim, Jeehye; Chungyu Park. The Measure of Risk Aversion and Housing Asset Allocation. The Korea Spatial Planning Review, 109, 53-72. doi: 10.15793/kspr.2021.109..004

Kim, Jeehye; Chungyu Park. The Measure of Risk Aversion and Housing Asset Allocation. The Korea Spatial Planning Review. 2021; 109 53-72. doi: 10.15793/kspr.2021.109..004

Kim, Jeehye, Chungyu Park. The Measure of Risk Aversion and Housing Asset Allocation. 2021; 109 53-72. Available from: doi:10.15793/kspr.2021.109..004

Kim, Jeehye and Chungyu Park. "The Measure of Risk Aversion and Housing Asset Allocation" The Korea Spatial Planning Review 109(2021) : 53-72.doi: 10.15793/kspr.2021.109..004