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 …

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 … comes at a cognitive cost, and therefore is only undertaken in response to sufficiently large risk exposure. In addition to …

firms largely follow the precautionary savings motive and do not seem to misappropriate their funds when shifting them …

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 …

-section shows large differences as young, educated, high income, and risk tolerant investors are net buyers throughout and, thus … liquidity shocks from Covid-19 are net sellers. Given the high risk of illness, older people are hit by dual blows to both …