Advanced Search
MyIDEAS: Login to save this paper or follow this series

Household Finances and Attitudes towards Risk

Contents:

Author Info

  • Sarah Brown

    ()

  • Gaia Garino
  • Karl Taylor

    ()
    (Department of Economics, The University of Sheffield)

Abstract

No abstract is available for this item.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.shef.ac.uk/content/1/c6/08/38/04/SERP2008005.pdf
Our checks indicate that this address may not be valid because: 404 Not Found (http://www.shef.ac.uk/content/1/c6/08/38/04/SERP2008005.pdf [301 Moved Permanently]--> http://www.sheffield.ac.uk/content/1/c6/08/38/04/SERP2008005.pdf). If this is indeed the case, please notify (Georgios Efthyvoulou)
File Function: First version, 2008
Download Restriction: no

File URL: http://www.shef.ac.uk/content/1/c6/08/38/04/SERP2008005.pdf
Our checks indicate that this address may not be valid because: 404 Not Found (http://www.shef.ac.uk/content/1/c6/08/38/04/SERP2008005.pdf [301 Moved Permanently]--> http://www.sheffield.ac.uk/content/1/c6/08/38/04/SERP2008005.pdf). If this is indeed the case, please notify (Georgios Efthyvoulou)
File Function: Revised version, 2008
Download Restriction: no

Bibliographic Info

Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2008005.

as in new window
Length: 32 pages
Date of creation: Apr 2008
Date of revision: Dec 2009
Handle: RePEc:shf:wpaper:2008005

Contact details of provider:
Postal: 9 Mappin Street, SHEFFIELD, S1 4DT
Phone: +44 114 222 3399
Fax: + 44 (0)114 222 3458
Email:
Web page: http://www.shef.ac.uk/economics
More information through EDIRC

Related research

Keywords: We explore the relationship between risk preference and household finances; namely the level of unsecured debt and saving at the household level; within the context of a two period theoretical framework; which predicts that debt and saving are functions of risk aversion. We test the predictions of our theoretical framework for a sample of households drawn from the U.S. Panel Study of Income Dynamics (PSID). Using a sequence of questions from the 1996 PSID; we construct a measure of risk preference allowing us to explore the implications of interpersonal differences in risk preference for whether households hold unsecured debt and/or savings as well as exploring the relationship between risk preference and the accumulation of unsecured debt and savings at the household level. Our empirical findings suggest that risk preference is an important determinant of the level of unsecured debt acquired at the household level with risk aversion serving to reduce the level of unsecured debt accumulated by households; whilst risk preference does not appear to influence the level of financial assets at the household level.;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Sarah Brown & Karl Taylor, 2008. "Household debt and financial assets: evidence from Germany, Great Britain and the USA," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 171(3), pages 615-643.
  2. Luigi Guiso & Tullio Jappelli, 2000. "Household Portfolios in Italy," CSEF Working Papers 43, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
  3. H. M. Shefrin & Richard Thaler, 1977. "An Economic Theory of Self-Control," NBER Working Papers 0208, National Bureau of Economic Research, Inc.
  4. Satyajit Chatterjee & Dean Corbae & Makoto Nakajima & Jose-Victor Rios-Rull, 2007. "A quantitative theory of unsecured consumer credit with risk of default," Working Papers 07-16, Federal Reserve Bank of Philadelphia.
  5. Robert B. Barsky & Miles S. Kimball & F. Thomas Juster & Matthew D. Shapiro, 1995. "Preference Parameters and Behavioral Heterogeneity: An Experimental Approach in the Health and Retirement Survey," NBER Working Papers 5213, National Bureau of Economic Research, Inc.
  6. Benhabib, Jess & Bisin, Alberto, 2005. "Modeling internal commitment mechanisms and self-control: A neuroeconomics approach to consumption-saving decisions," Games and Economic Behavior, Elsevier, vol. 52(2), pages 460-492, August.
  7. Sarah Brown & Karl Taylor & Gaia Garino & Stephen Wheatley Price, 2003. "Debt and financial expectations: an individual and household level analysis," Discussion Papers in Economics 03/5, Department of Economics, University of Leicester, revised Feb 2004.
  8. Donkers, Bas & van Soest, Arthur, 1999. "Subjective measures of household preferences and financial decisions," Journal of Economic Psychology, Elsevier, vol. 20(6), pages 613-642, December.
  9. Powell, James L., 1984. "Least absolute deviations estimation for the censored regression model," Journal of Econometrics, Elsevier, vol. 25(3), pages 303-325, July.
  10. Richard H. Thaler & Shlomo Benartzi, 2004. "Save More Tomorrow (TM): Using Behavioral Economics to Increase Employee Saving," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages S164-S187, February.
  11. Sarah Brown & Karl Taylor, 2005. "Household Debt and Financial Assets: Evidence from Great Britain, Germany and the United States," Discussion Papers in Economics 05/5, Department of Economics, University of Leicester.
  12. Reint Gropp & John Karl Scholz & Michelle White, 1996. "Personal Bankruptcy and Credit Supply and Demand," NBER Working Papers 5653, National Bureau of Economic Research, Inc.
  13. Jonathan Crook, 2001. "The demand for household debt in the USA: evidence from the 1995 Survey of Consumer Finance," Applied Financial Economics, Taylor & Francis Journals, vol. 11(1), pages 83-91.
  14. Shaw, Kathryn L, 1996. "An Empirical Analysis of Risk Aversion and Income Growth," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 626-53, October.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:shf:wpaper:2008005. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Georgios Efthyvoulou).

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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