Financial Literacy Confidence - Stock Market Participation Among German Households - Finance Assignment Help

Assignment Task:

Dataset & Task 

For the analysis of the above-formulated research question use the provided dataset “save2009.dta”. The SAVE-Panel is a survey from 2009 dealing with savings and retirement provision in Germany. Besides financial data (investment behavior), this dataset contains information about the perceived and objective financial literacy of German households. Your task is twofold:

(i) test the hypothesis that financial literacy underconfidence/overconfidence decreases/increases the likelihood to invest in the stock market, and examine

(ii) whether the respective confidence decreases/increases the proportion of financial wealth invested in the stock market. Generally, (under-/over-) confidence can be understood as the difference between objective and perceived financial literacy. Alongside the dataset, you receive a codebook, as well as the corresponding questionnaire to the survey.

Structure 

Structure your paper as follows: 

Titlepage + Abstract 

1. Data 

2. Methodology 

3. Analysis & Results 

3.1. Descriptive Statistics 3.2. Regression Analysis 3.3. Robustness & Endogeneity 

4. Discussion & Conclusions 

5. Appendix 

6. References 

In the following, you will find information on the desired contents of each chapter. The aim of the paper is to write the analytical part of a journal article, to perform the respective calculations and to present them in a publishable manner. 

Data 

Please explain which institution conducted the survey and for which purpose (verbal description of the dataset at hand). If possible, refer to other studies, which utilized the same dataset.

Methodology 

Outline your regression models in mathematical notations. Describe your dependent variable(s), your principal independent variable(s) and other sociodemographic and control variables. Essentially, you decide yourself, which variables are of interest in order to investigate the postulated research questions. Therefore, consider such variables in your analysis that you reckon are relevant to answer your research questions. Additionally, incorporate those variables in your analysis that existing literature features as standard (i.e. control variables). Explicitly model gender differences in your analysis as well. 

Descriptive Statistics 

Appropriately illustrate your data graphically. Moreover, you should construct a table that delineates the differences in mean value between women and men (mean comparison t-test).

Regression Analysis 

Carry out the regressions suited for your analysis. Explicate subsequently the effects of the variables. Hereby, you may not only characterize statistically significant influences but also startling non-significant effects. Consider the age and the squared term (age2) when describing the variables’ effects. How to interpret the squared term? Use additional columns in the regression analysis were required to gradually expand your model or to investigate specific groups of persons.

Robustness & Endogeneity 

Address a possible issue due to endogeneity (reverse causality etc.) in your regression analysis. Corresponding, conduct an instrumental variable regression. To perform this calculation, you will find two variables in your dataset from the SAVE-survey 2010. On the one hand, the parents’ financial knowledge and on the other hand, economic education, which has been generally accepted as valid instruments in the research literature. Utilize these and test your hypotheses by means of this endogeneity approach. Are your results robust or do your previous findings change? In addition, please indicate in your table the relevant test statistics that you learned about in this module (endogeneity test, HansenJ-Statistics, etc.) and discuss them in your paper. Moreover, households are basically nested within federal states (blue). This fact potentially jeopardizes the robustness of the estimates. Do we have to account for this hierarchical data structure in our analysis by performing a multilevel analysis? Briefly announce your decision by providing the appropriate statistical key figure.

Discussion & Conclusions 

Summarize your findings in relation to your pivotal research questions. Hereby, also elaborate on possible limitations of your analysis or results. Classify your results as far as possible in a superior context. 

Appendix 

Supplementarily, provide the following overviews: 

• Descriptive statistics of all used variables (Mean, S.D., Min., Max.,) 

• Correlation matrix of all used variables 

• Variable definitions 

• Financial literacy questions

Literature 

The literature listed below should ease your access to technical literature and can serve as a starting point for further literature in this research area. The analyses carried out in these articles may serve as an inspiration for your own. You may use other literature to substantiate your findings and generate cross-references to other research.

Additional Advice: 

– Weigh your data. Utilize the weighting for all your analyses without exception. (Unless you want to check the robustness of your findings without applying survey weights.) 

– Bear in mind that you are independent in analyzing the data. Respectively, you can determine which analyses to carry out. 

– Number and title each figure (Figure) or table (Table). Formulate additionally a short explanation directly above or below your figure/table. Use your analyses and graphs pointedly to write your text. 

– Consider technical literature on “financial literacy” with regard to your analyses and formulations. 

– If any Stata-commands cannot be run with the svy-prefix, you may use appropriate alternative commands to perform your calculations. 

– In the respective sections, you may refer to tables and figures in the appendix. (For instance, descriptive statistics –> correlation matrix). 

– Write an “abstract” based on your findings for your front page. 

– You must not include a list of tables, list of figures and/ or table of contents for your paper (journal- format). 

– Remember to submit a workable Do-File in unison.

This Finance Assignment has been solved by our Finance Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.