Risk Attitude, Impatience, and Asset Choice
Attitudes with respect to risk bearing, self-control and impatience are potentially important determinants of a households' decision whether or not to hold a certain assets. They are, however, hard to measure. This paper acknowledges the endogeneity of common measures of risk attitudes and impatience. Specifically, this study exploits responses to hypothetical lottery questions and self-assessments to analyze the impact of individual attitudes with respect to risk and time on asset choice. In addition, we investigate the role of borrowing constraints, income uncertainty, human capital, labor supply flexibility, and tax incentives. We use Dutch cross-section microdata and apply simulated maximum likelihood methods to analyze the determinants and interdependence of attitudes and asset choice in a non-linear structural equations model.
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2002-03-22
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Authors: | Eymann, Angelika ; Börsch-Supan, Axel ; Euwals, Rob |
Institutions: | Sonderforschungsbereich 504 "Rationalitätskonzepte, Entscheidungsverhalten und ökonomische Modellierung", Abteilung für Volkswirtschaftslehre ; Sonderforschungsbereich 504, University of Mannheim |
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Type of publication: | Book / Working Paper |
Notes: | Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged. The text is part of a series sfbmaa Number 02-28 50 pages |
Source: |
Persistent link: https://www.econbiz.de/10005761166
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