IDEAS home Printed from https://ideas.repec.org/a/bla/ausecp/v59y2020i1p43-54.html
   My bibliography  Save this article

Financial risk attitudes and aging in Australia

Author

Listed:
  • Dusanee Kesavayuth
  • Kaung Myat Ko
  • Vasileios Zikos

Abstract

A number of empirical studies document that people tend to become more risk averse as they get older. But other studies find only little evidence that age matters for financial risk attitudes. This prompts a call for revisiting the relationship between age and risk attitude to better support policy recommendations. The current paper contributes to this effort by utilising large‐scale population data to conduct a dynamic panel analysis. Care is taken to avoid the problem of endogeneity of lagged risk attitude in modelling its effects. Analysis reveals that individuals' past risk attitude has a positive effect on their current risk attitude. However, there is only little evidence that risk attitude and age are systematically related. Our results shed some light on the previous contradictory empirical findings in the literature and suggest that past risk attitude is potentially of greater relevance than chronological age in determining current risk attitude.

Suggested Citation

  • Dusanee Kesavayuth & Kaung Myat Ko & Vasileios Zikos, 2020. "Financial risk attitudes and aging in Australia," Australian Economic Papers, Wiley Blackwell, vol. 59(1), pages 43-54, March.
    • Handle: RePEc:bla:ausecp:v:59:y:2020:i:1:p:43-54
    DOI: 10.1111/1467-8454.12169
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-8454.12169
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-8454.12169?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yang, Liyuan & Zikos, Vasileios, 2023. "Mental health and smoking behavior," Economic Modelling, Elsevier, vol. 126(C).
    2. Geoffrey J Warren, 2022. "Design of comprehensive income products for retirement using utility functions," Australian Journal of Management, Australian School of Business, vol. 47(1), pages 105-134, February.
    3. Dusanee Kesavayuth & Prompong Shangkhum & Vasileios Zikos, 2022. "Building physical health: What is the role of mental health?," Bulletin of Economic Research, Wiley Blackwell, vol. 74(2), pages 457-483, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ausecp:v:59:y:2020:i:1:p:43-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.