Changes in risk attitudes vary across domains throughout the life course

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2023
Volume: 212
Issue: C
Pages: 534-563

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Risk attitudes are important predictors of various economic decisions and socioeconomic outcomes. Although studies show that peoples’ general willingness to take risks decreases with age, there are few reports on the age dependence of domain-specific risk attitudes. Drawing on the Socio-Economic Panel (SOEP), this study employs a proxy variable approach to disentangle age from periodic and cohort effects, while allowing the age effect to take a flexible functional form. Our analyses indicate that risk attitudes are domain-specific. Additionally, we show that age-profiles of general rather than domain-specific risk attitudes can lead to misleading results when they are used to predict life outcomes.

Technical Details

RePEc Handle
repec:eee:jeborg:v:212:y:2023:i:c:p:534-563
Journal Field
Theory
Author Count
3
Added to Database
2026-01-26