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Households' Appetite for Financial Risk

Author

Listed:
  • Susan Black

    (Reserve Bank of Australia)

  • Lamorna Rogers

    (Reserve Bank of Australia)

  • Albina Soultanaeva

    (Reserve Bank of Australia)

Abstract

Australian households’ appetite for risk appears to have declined in recent years with households having actively shifted their portfolios away from riskier financial assets. The change in the composition of financial assets has been seen across most age and income groups. The shift in households’ actual risk exposures also accords with changes in self-reported preferences for risk.

Suggested Citation

  • Susan Black & Lamorna Rogers & Albina Soultanaeva, 2012. "Households' Appetite for Financial Risk," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 37-42, June.
    • Handle: RePEc:rba:rbabul:jun2012-04
    as

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    File URL: https://www.rba.gov.au/publications/bulletin/2012/jun/pdf/bu-0612-4.pdf
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    References listed on IDEAS

    as
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    5. Alexander, Gordon J. & Baptista, Alexandre M., 2010. "Active portfolio management with benchmarking: A frontier based on alpha," Journal of Banking & Finance, Elsevier, vol. 34(9), pages 2185-2197, September.
    6. Cohn, Richard A, et al, 1975. "Individual Investor Risk Aversion and Investment Portfolio Composition," Journal of Finance, American Finance Association, vol. 30(2), pages 605-620, May.
    7. Jessica A. Wachter & Motohiro Yogo, 2010. "Why Do Household Portfolio Shares Rise in Wealth?," The Review of Financial Studies, Society for Financial Studies, vol. 23(11), pages 3929-3965, November.
    8. Richard Finlay, 2012. "The Distribution of Household Wealth in Australia: Evidence from the 2010 HILDA Survey," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 19-27, March.
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    Cited by:

    1. Kesavayuth, Dusanee & Ko, Kaung Myat & Zikos, Vasileios, 2018. "Locus of control and financial risk attitudes," Economic Modelling, Elsevier, vol. 72(C), pages 122-131.

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