Windfall Gains and Stock Market Participation

This paper is part of a project hosted by the Research Institute of Industrial Economics (IFN). We are grateful to IFN Director Magnus Henrekson for his strong support of the project. For helpful comments, we thank Steffen Andersen, Dan Benjamin, Claudio Campanale, David Laibson, Annette Vissing-Jørgensen, Enrichetta Ravina, Paolo Sodini, and Roine Vestman, as well as seminar participants at NYU Stern, IFN, Institute for International Economic Studies, the 2015 NBER SI (Household Finance), and the 2015 SED. We also gratefully acknowledge financial support from the NBER Household Finance working group (22-2382-13-1-33-003), the NSF (1326635), the Swedish Council for Working Life and Social Research (2011-1437), the Swedish Research Council (B0213903), and Handelsbanken’s Research Foundations (P2011:0032:1). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.