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Risk Aversion and Religion

Author

Listed:
  • Noussair, C.N.

    (Tilburg University, Center For Economic Research)

  • Trautmann, S.T.

    (Tilburg University, Center For Economic Research)

  • van de Kuilen, G.

    (Tilburg University, Center For Economic Research)

  • Vellekoop, N.

    (Tilburg University, Center For Economic Research)

Abstract

Abstract: Using a dataset for a demographically representative sample of the Dutch population, containing a revealed preference risk attitude measure, as well as very detailed information about participants’ religious background, we study three issues raised in previous literature. First, we find strong confirmatory evidence that more religious people, as measured by church membership or attendance, are more risk averse. Second, we obtain some evidence that Protestants are more risk averse than Catholics. Third, our data suggest that the link between risk aversion and religion is driven by social aspects of church membership, rather than by religious beliefs themselves.

Suggested Citation

  • Noussair, C.N. & Trautmann, S.T. & van de Kuilen, G. & Vellekoop, N., 2012. "Risk Aversion and Religion," Discussion Paper 2012-073, Tilburg University, Center for Economic Research.
  • Handle: RePEc:tiu:tiucen:b611b08c-0053-41df-82aa-c3724036c8ae
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. León, Anja Köbrich & Pfeifer, Christian, 2017. "Religious activity, risk-taking preferences and financial behaviour: Empirical evidence from German survey data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 69(C), pages 99-107.
    2. repec:eee:ehbiol:v:26:y:2017:i:c:p:21-29 is not listed on IDEAS
    3. Adhikari, Binay Kumar & Agrawal, Anup, 2016. "Does local religiosity matter for bank risk-taking?," Journal of Corporate Finance, Elsevier, vol. 38(C), pages 272-293.
    4. Martin Eling & Shailee Pradhan & Joan T Schmit, 2014. "The Determinants of Microinsurance Demand," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 39(2), pages 224-263, April.
    5. Chen, Hsiao-Chi & Liu, Shi-Miin, 2016. "Should ports expand their facilities under congestion and uncertainty?," Transportation Research Part B: Methodological, Elsevier, vol. 85(C), pages 109-131.
    6. repec:eee:intfin:v:50:y:2017:i:c:p:119-134 is not listed on IDEAS
    7. Brigitte Hoogendoorn & Cornelius A. Rietveld & André Stel, 2016. "Belonging, believing, bonding, and behaving: the relationship between religion and business ownership at the country level," Journal of Evolutionary Economics, Springer, vol. 26(3), pages 519-550, July.
    8. T.M. van Huizen & Rob Alessie, 2016. "Risk Aversion and Job Mobility," Working Papers 16-09, Utrecht School of Economics.
    9. Maryam Dilmaghani, 2017. "Religiosity and Labour Earnings in Canadian Provinces," Journal of Labor Research, Springer, vol. 38(1), pages 82-99, March.
    10. repec:eco:journ1:2018-02-28 is not listed on IDEAS
    11. Chen, Yangyang & Murgulov, Zoltan & Rhee, S. Ghon & Veeraraghavan, Madhu, 2016. "Religious beliefs and local government financing, investment, and cash holding decisions," Journal of Empirical Finance, Elsevier, vol. 38(PA), pages 258-271.

    More about this item

    Keywords

    risk aversion; religion; Catholicism; Protestantism.;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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