We show that household heads with a strong internal economic locus of control are more likely to hold equity and hold a … this relation is driven by a link between internal economic locus of control and a lower perception of the risk of …

risk preferences. Furthermore, religious beliefs are thought to explain differences in risk-preparedness on the individual … level. We analyze these two possible determinants of individual risk attitudes: nationality and religion. First addressing … the study of risk attitudes in a literature review, we then test our hypotheses empirically using the large …

This paper explores the relationship between self-declared risk aversion of private investors and their willingness to … hold diversified portfolios of financial assets. The analysis is based on household survey data from the German … Socioeconomic Panel (SOEP) that provides a reliable measure of individual attitude towards financial risk. Our empirical findings …

Household financial resilience is related to the availability of financial resources but also to the ability to … risks, which could affect the future financial situation of their own household (treatment) or of a household with similar … asked for their own household compared to a similar household - confirming overplacement bias in the context of financial …

language may influence risk perception and investment behavior, no study has explored the causal effects of linguistic … asked to answer an extensive questionnaire covering risk perception and individual characteristics such as Big 5 personality … and financial literacy. Empirically, we observe a significant positive impact of linguistic uncertainty on risk perception …

This paper explores the relationship between risk attitude and asset diversification in household portfolios. We first … socioeconomic characteristics, the propensity for taking investment risk is an important predictor of a household's diversification … examine the impact of manifested risk aversion on the total number of distinct assets held in a portfolio (naive …

This paper explores the relationship between risk attitude and asset diversification in household portfolios. We first … socioeconomic characteristics, the propensity for taking investment risk is an important predictor of a household's diversification … examine the impact of manifested risk aversion on the total number of distinct assets held in a portfolio (naive …

This study investigates whether and how the crisis in 2008/2009 affects 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 effect. However, households that attribute losses to the crisis decreased their risk …

puzzle. Our model generates a moderate premium for equity as well as endogenous heterogeneity in risk exposure, with one … optimal risk attitude utility. Our model is an extension of recursive expected utility that allows an individual to optimally … select her risk aversion parameter in response to the uncertainty that she faces. Choosing a lower level of risk aversion …

high risk takers are also less likely to own a life insurance. If endogenous adaption of risk attitudes from holding assets … in risky assets itself impact on risk attitudes. We show that individuals with a higher willingness to take risks are … more likely to hold bonds, stocks, and company assets. When grouping individuals into risk groups, our results reveal that …