Countercyclical risk aversion: Beyond financial professionals
Christian König-Kersting and
Journal of Behavioral and Experimental Finance, 2018, vol. 18, issue C, 94-101
We test if Cohn et al.’s (2015) experimental results on countercyclical risk aversion exhibited by financial professionals generalize to a standard student sample. In our sample, we do not find an effect of stock market bust or boom on subjects’ investments. We do not find a systematic emotional reaction, nor do we find an effect of variation in the emotional state (especially fear) on investment. Our results add to the literature documenting behavioral differences between financial professionals and non-professionals and, taking a policy perspective, underline the need for careful external validity checks of single sample experiments.
Keywords: Risk aversion; Business cycle; Priming (search for similar items in EconPapers)
JEL-codes: E32 E44 G01 G11 G12 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:18:y:2018:i:c:p:94-101
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