Impact of Behavioural Attention on the Households' Foreign Currency Savings as a Response to the External Macroeconomic Shocks

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F19%3A43914915" target="_blank" >RIV/62156489:43110/19:43914915 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.18267/j.pep.690" target="_blank" >https://doi.org/10.18267/j.pep.690</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.18267/j.pep.690" target="_blank" >10.18267/j.pep.690</a>

Result language

angličtina

Original language name

Impact of Behavioural Attention on the Households' Foreign Currency Savings as a Response to the External Macroeconomic Shocks

Original language description

This paper investigates the impact of behavioural attention on the households&apos; foreign currency savings as a response to the external macroeconomic shocks. The information that the households acquire via different communication channels is expected to influence their decisions regarding their savings&apos; allocation into different currencies. This study has applied the fundamental macroeconomic models by including individuals&apos; attention to the specific risks and search interest in specific keywords on Google in order to assess the impact of acquired information and its communication channel on the households&apos; foreign currency savings. We employed a twolevel mixed effects model including macroeconomic fundamentals and individuals&apos; attention to the information determinants. We solved a problem of a long list of potential explanatory variables (keywords) by employing the Bayesian Model Averaging. This study assumes that households are more sensitive to the macroeconomic shocks (factors) if they search simultaneously for information on Google about these factors or specific related risks. The results emphasize the role behavioural attention during financial turmoil and economic downturn periods, especially in the environment of very low interest rates.

Czech name

—

Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

—

OECD FORD branch

50206 - Finance

Project

<a href="/en/project/GA16-26353S" target="_blank" >GA16-26353S: Sentiment and its impact on stock markets</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2019

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Prague Economic Papers

ISSN

1210-0455

e-ISSN

—

Volume of the periodical

28

Issue of the periodical within the volume

2

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

23

Pages from-to

155-177

UT code for WoS article

000465367700002

EID of the result in the Scopus database

2-s2.0-85071943092