Showing 1 - 6 of 6
This study investigates the effect of risk aversion of single-parent households with at least one child under 18 on life insurance ownership. Analyzing the 1992-2013 Survey of Consumer Finances datasets, we found that the likelihood of owning term life insurance decreases as risk aversion...
Persistent link: https://www.econbiz.de/10012916070
Between 2006 and 2008, 9% of Korean households had an income decrease of 50% or more, a rate almost identical to the U.S., despite the much lower impact of the global financial crisis on Korea. We ran a logistic regression to determine factors related to the likelihood of a substantial income...
Persistent link: https://www.econbiz.de/10012949764
Persistent link: https://www.econbiz.de/10012204725
Hypothetical questions were used with 252 students at two universities to elicit values of relative risk aversion and of the elasticity of marginal utility with respect to consumption. Conceptually, the magnitude of these two utility function parameters are plausibly similar, but there was not a...
Persistent link: https://www.econbiz.de/10014134870
Assessment of risk tolerance is fundamental to proper asset allocation within a household portfolio. It is also a frequently misunderstood concept and difficult to measure practically. We discuss the relationship between risk aversion and portfolio recommendations based on an expected utility...
Persistent link: https://www.econbiz.de/10013037673
This research extends the work of Yao, Hanna, and Lindamood (2004) and others in attempting to ascertain how stock market fluctuations affect the risk tolerance of households. We used the 1992 to 2013 datasets of the Survey of Consumer Finances (SCF), and found that whether respondents were...
Persistent link: https://www.econbiz.de/10012979317