Parameter | Description | Sample Population | Baby Boomer Population | ||||||
---|---|---|---|---|---|---|---|---|---|
2002 | 2014 | 2002 | 2014 | ||||||
Mean | Standard Deviation | Mean | Standard Deviation | Mean | Standard Deviation | Mean | Standard Deviation | ||
Generation category | Generation Y | 0.030 | 0.171 | 0.252 | 0.434 | ||||
Generation X | 0.321 | 0.467 | 0.307 | 0.461 | |||||
Baby Boomer generation | 0.399 | 0.490 | 0.310 | 0.462 | |||||
Silent generation | 0.207 | 0.406 | 0.126 | 0.332 | |||||
Greatest generation | 0.041 | 0.199 | 0.006 | 0.077 | |||||
Asset Class Ownership | Bank accounts | 0.980 | 0.140 | 0.983 | 0.131 | 0.980 | 0.139 | 0.986 | 0.119 |
Cash investments | 0.032 | 0.176 | 0.012 | 0.110 | 0.024 | 0.154 | 0.012 | 0.107 | |
Equities ( |
0.437 | 0.496 | 0.318 | 0.466 | 0.484 | 0.500 | 0.395 | 0.489 | |
Superannuation | 0.808 | 0.394 | 0.871 | 0.336 | 0.931 | 0.281 | 0.890 | 0.313 | |
Asset Class Ownership | Insurance | 0.124 | 0.329 | 0.067 | 0.250 | 0.150 | 0.357 | 0.079 | 0.270 |
Trusts | 0.041 | 0.199 | 0.044 | 0.205 | 0.046 | 0.210 | 0.048 | 0.214 | |
Family home | 0.721 | 0.448 | 0.663 | 0.473 | 0.785 | 0.411 | 0.797 | 0.403 | |
Other property | 0.186 | 0.390 | 0.229 | 0.420 | 0.233 | 0.423 | 0.304 | 0.460 | |
Businesses | 0.148 | 0.356 | 0.114 | 0.318 | 0.193 | 0.395 | 0.129 | 0.336 | |
Vehicles | 0.912 | 0.284 | 0.930 | 0.255 | 0.941 | 0.235 | 0.959 | 0.198 | |
Collectibles | 0.146 | 0.353 | 0.140 | 0.347 | 0.154 | 0.361 | 0.155 | 0.362 | |
Asset Class Portfolio Share | Bank accounts | 0.095 | 0.193 | 0.095 | 0.184 | 0.064 | 0.148 | 0.074 | 0.151 |
Cash investments | 0.003 | 0.027 | 0.001 | 0.019 | 0.002 | 0.019 | 0.001 | 0.011 | |
Equities ( |
0.039 | 0.104 | 0.023 | 0.080 | 0.032 | 0.084 | 0.024 | 0.074 | |
Superannuation | 0.203 | 0.230 | 0.262 | 0.257 | 0.223 | 0.225 | 0.264 | 0.237 | |
Insurance | 0.009 | 0.052 | 0.012 | 0.074 | 0.010 | 0.052 | 0.009 | 0.056 | |
Trusts | 0.005 | 0.044 | 0.007 | 0.054 | 0.004 | 0.041 | 0.005 | 0.043 | |
Family home | 0.422 | 0.332 | 0.389 | 0.334 | 0.441 | 0.309 | 0.424 | 0.295 | |
Other property | 0.060 | 0.156 | 0.084 | 0.183 | 0.073 | 0.165 | 0.099 | 0.183 | |
Businesses | 0.035 | 0.126 | 0.019 | 0.086 | 0.044 | 0.136 | 0.019 | 0.082 | |
Vehicles | 0.118 | 0.198 | 0.101 | 0.182 | 0.099 | 0.175 | 0.074 | 0.162 | |
Collectibles | 0.011 | 0.061 | 0.008 | 0.053 | 0.009 | 0.051 | 0.006 | 0.041 |
Parameter | Description | Variable sign | Expected sign | 2002 | 2014 | ||
---|---|---|---|---|---|---|---|
Mean | Standard Deviation | Mean | Standard Deviation | ||||
Gender | Female=1 | FEM | – | 0.524 | 0.499 | 0.529 | 0.499 |
Male=1 |
MAL | + | 0.476 | 0.499 | 0.471 | 0.499 | |
Household structure | Couples with children=1 |
CWC | + | 0.577 | 0.494 | 0.321 | 0.467 |
Lone parents=1 | LPC | – | 0.097 | 0.296 | 0.079 | 0.269 | |
Lone person=1 | LNP | – | 0.117 | 0.321 | 0.164 | 0.370 | |
Couple=1 | CPL | + | 0.192 | 0.394 | 0.415 | 0.493 | |
Multi-family/Other=1 | MFO | – | 0.017 | 0.130 | 0.022 | 0.146 | |
Education category | Bachelor’s degree and above=1 | DEG | + | 0.235 | 0.424 | 0.263 | 0.440 |
Vocational qualification=1 | VOC | – | 0.300 | 0.458 | 0.358 | 0.479 | |
Year 12 |
Y12 | – | 0.113 | 0.316 | 0.091 | 0.287 | |
Year 11=1 | Y11 | – | 0.353 | 0.478 | 0.288 | 0.453 | |
Health | Excellent health=1 | EHT | + | 0.098 | 0.298 | 0.063 | 0.243 |
Very good health=1 | VHT | + | 0.343 | 0.475 | 0.300 | 0.458 | |
Good health |
GHT | – | 0.334 | 0.472 | 0.357 | 0.479 | |
Fair health=1 | FHT | – | 0.116 | 0.320 | 0.162 | 0.368 | |
Poor health=1 | PHT | – | 0.027 | 0.162 | 0.042 | 0.200 | |
Household income | <$20,000=1 | INC1 | – | 0.042 | 0.201 | 0.037 | 0.188 |
$20,000 to $49,999=1 | INC2 | – | 0.152 | 0.359 | 0.183 | 0.386 | |
$50,000 to $99,999 |
INC3 | + | 0.348 | 0.477 | 0.268 | 0.443 | |
>$100,000=1 | INC4 | + | 0.458 | 0.498 | 0.513 | 0.500 | |
Net wealth | Under $499,999=1 | NW1 | – | 0.649 | 0.477 | 0.335 | 0.472 |
$500,000-$999,999 |
NW2 | + | 0.217 | 0.412 | 0.263 | 0.440 | |
$1,000,000-$1,499,999=1 | NW3 | + | 0.061 | 0.239 | 0.152 | 0.359 | |
Above $1,500,000=1 | NW4 | + | 0.047 | 0.211 | 0.231 | 0.422 |
Parameter | Description | Variable sign | Expected sign | 2002 | |
---|---|---|---|---|---|
Mean | Standard Deviation | ||||
Financial risk prepared to take | Takes substantial financial risks expecting substantial financial returns | FIR | + | 0.014 | 0.012 |
Takes above average financial risks expecting above average financial returns | + | 0.079 | 0.058 | ||
Takes average financial risks expecting average financial returns | – | 0.376 | 0.409 | ||
Not willing to take financial risks | – | 0.332 | 0.384 | ||
Never has any spare cash | – | 0.199 | 0.138 | ||
Savings habits | Don’t save: Usually spend more than income | FIS | – | 0.061 | 0.052 |
Don’t save: Usually spend about as much as income | – | 0.261 | 0.172 | ||
Save whatever is left over–no regular savings plan | – | 0.389 | 0.432 | ||
Spend regular income, save other income | – | 0.069 | 0.077 | ||
Save regularly by putting money aside | + | 0.219 | 0.268 | ||
Investment horizon | The next week | FIH | – | 0.195 | 0.194 |
The next few months | – | 0.230 | 0.246 | ||
The next year | – | 0.169 | 0.175 | ||
The next 2 to 4 years | + | 0.128 | 0.129 | ||
The next 5 to 10 years | + | 0.177 | 0.170 | ||
More than 10 years ahead | + | 0.101 | 0.086 |
Variable | 2002 | 2014 | ||||
---|---|---|---|---|---|---|
Coefficient | Robust standard error | p-values | Coefficient | Robust standard error | p-values | |
FEM | 0.007 | 0.004 | 0.116 | 0.002 | 0.005 | 0.673 |
LPC | 0.008 | 0.009 | 0.384 | 0.013 | 0.013 | 0.315 |
LNP | 0.006 | 0.009 | 0.530 | 0.019 | 0.008 | 0.023 |
CPL | 0.025 | 0.005 | 0.000 | 0.010 | 0.005 | 0.050 |
MFO | -0.036 | 0.017 | 0.038 | -0.007 | 0.016 | 0.642 |
DEG | 0.000 | 0.008 | 0.961 | 0.001 | 0.008 | 0.899 |
VOC | 0.002 | 0.007 | 0.825 | 0.003 | 0.008 | 0.746 |
Y11 | -0.013 | 0.007 | 0.078 | 0.000 | 0.009 | 0.986 |
EHT | 0.006 | 0.007 | 0.403 | 0.002 | 0.008 | 0.806 |
VHT | 0.003 | 0.005 | 0.467 | 0.002 | 0.005 | 0.659 |
FHT | -0.001 | 0.008 | 0.901 | 0.009 | 0.007 | 0.200 |
PHT | 0.010 | 0.020 | 0.622 | 0.009 | 0.017 | 0.601 |
INC1 | -0.024 | 0.018 | 0.177 | -0.017 | 0.019 | 0.366 |
INC2 | -0.012 | 0.008 | 0.131 | -0.019 | 0.008 | 0.014 |
INC4 | 0.006 | 0.005 | 0.209 | -0.002 | 0.006 | 0.681 |
NW1 | -0.042 | 0.005 | 0.000 | -0.049 | 0.007 | 0.000 |
NW3 | 0.033 | 0.009 | 0.000 | 0.029 | 0.006 | 0.000 |
NW4 | 0.058 | 0.013 | 0.000 | 0.074 | 0.007 | 0.000 |
FIS | 0.003 | 0.002 | 0.084 | 0.006 | 0.002 | 0.003 |
FIH | 0.005 | 0.001 | 0.000 | 0.004 | 0.002 | 0.006 |
FIR | -0.033 | 0.003 | 0.000 | -0.026 | 0.003 | 0.000 |
Constant | 0.077 | 0.016 | 0.000 | -0.014 | 0.017 | 0.428 |
Number of observations | 4725 | 4914 | ||||
F statistic | 21.450 | 0.000 | 19.170 | 0.000 | ||
Log Psedolikelihood | 370.416 | -25.887 | ||||
Pseudo R2 | 7.112 | 0.941 |
Variable | 2002 | 2014 | ||||
---|---|---|---|---|---|---|
Coefficient | Robust standard error | p-values | Coefficient | Robust standard error | p-values | |
FEM | 0.127 | 0.070 | 0.069 | 0.074 | 0.068 | 0.278 |
LPC | -0.302 | 0.122 | 0.013 | -0.309 | 0.153 | 0.043 |
LNP | -0.304 | 0.120 | 0.011 | 0.014 | 0.116 | 0.906 |
CPL | 0.250 | 0.088 | 0.004 | -0.006 | 0.079 | 0.940 |
MFO | -0.759 | 0.287 | 0.008 | -0.167 | 0.243 | 0.493 |
DEG | 0.108 | 0.122 | 0.373 | -0.113 | 0.128 | 0.379 |
VOC | 0.030 | 0.118 | 0.801 | 0.019 | 0.124 | 0.880 |
Y11 | -0.145 | 0.115 | 0.206 | -0.103 | 0.129 | 0.424 |
EHT | 0.090 | 0.116 | 0.437 | 0.030 | 0.130 | 0.815 |
VHT | 0.065 | 0.076 | 0.395 | -0.013 | 0.077 | 0.869 |
FHT | -0.081 | 0.111 | 0.470 | -0.011 | 0.100 | 0.912 |
PHT | -0.390 | 0.235 | 0.096 | -0.336 | 0.197 | 0.089 |
INC1 | -0.845 | 0.219 | 0.000 | -0.403 | 0.219 | 0.066 |
INC2 | -0.376 | 0.107 | 0.000 | -0.261 | 0.108 | 0.016 |
INC4 | 0.241 | 0.077 | 0.002 | 0.063 | 0.084 | 0.452 |
NW1 | -0.808 | 0.079 | 0.000 | -0.963 | 0.092 | 0.000 |
NW3 | 0.744 | 0.180 | 0.000 | 0.454 | 0.096 | 0.000 |
NW4 | 0.678 | 0.207 | 0.001 | 0.986 | 0.092 | 0.000 |
FIS | 0.057 | 0.030 | 0.058 | 0.123 | 0.030 | 0.000 |
FIH | 0.091 | 0.023 | 0.000 | 0.041 | 0.023 | 0.079 |
FIR | -0.494 | 0.043 | 0.000 | -0.391 | 0.047 | 0.000 |
Constant | 1.703 | 0.251 | 0.000 | 0.462 | 0.258 | 0.073 |
Number of observations | 4725 | 4914 | ||||
Wald Chi2 | 846.910 | 0.000 | 837.430 | 0.000 | ||
Log Psedolikelihood | -2714.409 | -2781.297 | ||||
Pseudo R2 | 0.171 | 0.162 |