Household Risk Taking after the Financial Crisis

Sarah Necker and Michael Ziegelmeyer

No 201402, MEA discussion paper series from Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy

Abstract: This study investigates whether and how the crisis in 2008/2009 a ects households' risk attitudes, subjective risk and return expectations, and planned - financial risk taking using the German SAVE study. Households' wealth change from end-2007 to end-2009 is not found to have an e ect. However, households that attribute losses to the crisis decreased their risk tolerance and planned risk taking; the probability of expecting an increase in risks and returns is raised. According to economic theory, wealth changes attributed to a dramatic event should not have a di erent e ect than other wealth changes. The results suggest an emotional reaction.

JEL-codes: D14 D81 G11 (search for similar items in EconPapers)
Date: 2014-02-13
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Household risk taking after the financial crisis (2016)
Working Paper: Household Risk Taking after the Financial Crisis (2014)
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