No. 1504 - EU views and household investments: evidence from the Brexit referendum

Temi di discussione (Working papers)
by Michele Cascarano, Laura Sigalotti and Francesco Stradi
November 2025
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This paper analyzes how Italian households' opinions about the European Union influenced their investment decisions following the UK referendum on leaving the EU (Brexit). Using data on household financial portfolios, the study examines whether portfolio allocation choices in provinces with lower trust in European institutions displayed different patterns of change from those in other provinces.

After the referendum, Italian investors residing in provinces with lower confidence in European institutions increased their holdings of British securities by a greater amount, on average, than investors from other provinces. This effect is not observed for securities from other foreign countries and does not appear to be driven by demographic or socio-economic factors. These findings suggest that Brexit was interpreted by those investors as a positive signal regarding the UK's economic prospects.

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  1. 18 November 2025
    No. 1504 - EU views and household investments: evidence from the Brexit referendum
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