In conjunction with this instrumental variables approach, we include in- dividual fixed effects to control for observable and unobservable individual characteristics that are fixed over time, such as gender, race, or average risk tolerance over the sample period. Because our sample is restricted to “natives” (whom we also refer to as “nonmovers”), the individual fixed effects also con- trol for time-invariant community characteristics such as the average level of financial sophistication of a community over the sample period. Thus, we re- late changes in individual ownership to changes in community ownership, as identified by changes in ownership in the birth states of one’s nonnative neigh- bors. Because not all.
