Financial Risk Aversion and Personal Life History
Alessandro Bucciol () and
No 05/2013, Working Papers from University of Verona, Department of Economics
Though risk attitude is central to economics and finance, relatively little is known about how it is formed and how it changes over time. Based on US data from a dedicated psycho-social module on lifestyle of the 2010 Health and Retirement Study (HRS), we provide new evidence on the correlation between financial risk attitude and life-history negative events out of an individual’s control. Using observed portfolio decisions to proxy for risk aversion, we find correlation with two of such events: having been in a natural disaster and (especially) the loss of a child. These effects survive after controlling for classic socio-demographic determinants of risk aversion.
Keywords: Risk Aversion; Financial Asset Ownership; Personal Life History; Behavioral Finance (search for similar items in EconPapers)
JEL-codes: D03 D14 D81 G02 G11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dem and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
http://dse.univr.it/home/workingpapers/risk_events_BZ.pdf First version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ver:wpaper:05/2013
Access Statistics for this paper
More papers in Working Papers from University of Verona, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Michael Reiter ().