How Vulnerable Is Risk Aversion to Wealth, Health and Other Risks? An Empirical Analysis for Europe

C. Courbage, Guillem Montoliu-Montes, B. Rey
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引用次数: 12

Abstract

This paper empirically assesses how financial risk aversion reacts to a change in individuals' wealth and health and to the presence of both financial and health risks using the Survey of Health, Ageing, and Retirement in Europe (SHARE). Individuals in our sample exhibit financial risk aversion decreasing both in wealth and health. Financial risk aversion is also found to increase in the presence of a background financial risk and a background health risk. Interestingly, risk aversion is shown to be convex in wealth but linear in health. Such findings complement the literature on risk aversion behaviours and can help to better understand various economic decisions in a risky environment.
风险厌恶对财富、健康和其他风险有多脆弱?对欧洲的实证分析
本文利用欧洲健康、老龄化和退休调查(SHARE),实证地评估了金融风险厌恶对个人财富和健康变化的反应,以及对金融和健康风险的存在。我们样本中的个人在财富和健康方面都表现出金融风险厌恶情绪。金融风险厌恶也被发现在存在背景金融风险和背景健康风险时增加。有趣的是,风险厌恶在财富方面呈凸形,而在健康方面呈线性。这些发现补充了有关风险规避行为的文献,有助于更好地理解风险环境中的各种经济决策。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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