Financial decision making in collective society--A field test on Israeli kibbutz members and city residents
AbstractThis comparison of Israeli kibbutz members to city residents examines how of individualistic/collective society affects financial decision making. Findings revealed that kibbutz members are more risk averse and discount the future more than city residents, undermining the assumption that collective society accords a safety net. We claim that the collective financial management of the kibbutz reduces individuals' financial knowledge and experience, causing them to be more risk averse in financial decisions, and thus overpowering the safety net offered by the collective society. In addition, we argue that despite privatization, individuals still operate according to collective ideas in handling their personal finances, but less than before the onset of the privatization process.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).
Volume (Year): 39 (2010)
Issue (Month): 1 (January)
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Web page: http://www.elsevier.com/locate/inca/620175
Discounting Risk aversion Cross-cultural Israeli kibbutz Collective Individualistic;
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