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Are Tall People Less Risk Averse than Others?

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  • Hübler, Olaf

    ()
    (Leibniz University of Hannover)

Abstract

This paper examines the question of whether risk aversion of prime-age workers is negatively correlated with human height to a statistically significant degree. A variety of estimation methods, tests and specifications yield robust results that permit one to answer this question in the affirmative. Hausman-Taylor panel estimates, however, reveal that height effects disappear if personality traits and skills, parents' behaviour, and interactions between environment and individual abilities appear simultaneously. Height is a good proxy for these influences if they are not observable. Not only one factor but a combination of several traits and interaction effects can describe the time-invariant individual effect in a panel model of risk attitude.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6441.

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Length: 28 pages
Date of creation: Mar 2012
Date of revision:
Publication status: published in: Journal of Applied Social Science Studies, 2013, 133 (1), 23-42
Handle: RePEc:iza:izadps:dp6441

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Keywords: risk preference; height;

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References

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Being tall and risk aversion
    by Economic Logician in Economic Logic on 2012-05-04 14:14:00
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Cited by:
  1. Tim Willems, 2013. "Political Accountability and Policy Experimentation: Why to Elect Left-Handed Politicians?," Economics Series Working Papers 647, University of Oxford, Department of Economics.

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