Risk aversion is an important factor in explaining many everyday decisions. Thus, one asks which determinants can explain different attitudes towards risk. Several studies show different risk attitudes with respect to gender, age, income, and wealth (e.g. [19]). While these findings are hardly controversial, there is still some uncertainty about the effect of culture on risk tolerance. Thus, the main issue of this survey is to elaborate possible differences in risk preferences that are caused by cultural background. The main question in this context is whether religion or nationality are of importance for explaining risk attitudes. For this purpose, this study employs the German Socio-Economic Panel (GSOEP) to figure out differences in risk attitudes. Another contribution of this article is that is uses a generalized ordered logit model while others use simple linear regression models or simple logit or probit models which are not efficient. The estimations show that the cultural background does indeed have some impact on risk taking behaviour.
| Published in | International Journal of Economics, Finance and Management Sciences (Volume 2, Issue 2) |
| DOI | 10.11648/j.ijefm.20140202.15 |
| Page(s) | 143-152 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2014. Published by Science Publishing Group |
Risk Tolerance, Cultural Background, Generalized Ordered Logit Model, Nationality, Religion
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APA Style
Christoph S. Weber. (2014). Determinants of Risk Tolerance. International Journal of Economics, Finance and Management Sciences, 2(2), 143-152. https://doi.org/10.11648/j.ijefm.20140202.15
ACS Style
Christoph S. Weber. Determinants of Risk Tolerance. Int. J. Econ. Finance Manag. Sci. 2014, 2(2), 143-152. doi: 10.11648/j.ijefm.20140202.15
AMA Style
Christoph S. Weber. Determinants of Risk Tolerance. Int J Econ Finance Manag Sci. 2014;2(2):143-152. doi: 10.11648/j.ijefm.20140202.15
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Download@article{10.11648/j.ijefm.20140202.15,
author = {Christoph S. Weber},
title = {Determinants of Risk Tolerance},
journal = {International Journal of Economics, Finance and Management Sciences},
volume = {2},
number = {2},
pages = {143-152},
doi = {10.11648/j.ijefm.20140202.15},
url = {https://doi.org/10.11648/j.ijefm.20140202.15},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20140202.15},
abstract = {Risk aversion is an important factor in explaining many everyday decisions. Thus, one asks which determinants can explain different attitudes towards risk. Several studies show different risk attitudes with respect to gender, age, income, and wealth (e.g. [19]). While these findings are hardly controversial, there is still some uncertainty about the effect of culture on risk tolerance. Thus, the main issue of this survey is to elaborate possible differences in risk preferences that are caused by cultural background. The main question in this context is whether religion or nationality are of importance for explaining risk attitudes. For this purpose, this study employs the German Socio-Economic Panel (GSOEP) to figure out differences in risk attitudes. Another contribution of this article is that is uses a generalized ordered logit model while others use simple linear regression models or simple logit or probit models which are not efficient. The estimations show that the cultural background does indeed have some impact on risk taking behaviour.},
year = {2014}
}
TY - JOUR T1 - Determinants of Risk Tolerance AU - Christoph S. Weber Y1 - 2014/03/30 PY - 2014 N1 - https://doi.org/10.11648/j.ijefm.20140202.15 DO - 10.11648/j.ijefm.20140202.15 T2 - International Journal of Economics, Finance and Management Sciences JF - International Journal of Economics, Finance and Management Sciences JO - International Journal of Economics, Finance and Management Sciences SP - 143 EP - 152 PB - Science Publishing Group SN - 2326-9561 UR - https://doi.org/10.11648/j.ijefm.20140202.15 AB - Risk aversion is an important factor in explaining many everyday decisions. Thus, one asks which determinants can explain different attitudes towards risk. Several studies show different risk attitudes with respect to gender, age, income, and wealth (e.g. [19]). While these findings are hardly controversial, there is still some uncertainty about the effect of culture on risk tolerance. Thus, the main issue of this survey is to elaborate possible differences in risk preferences that are caused by cultural background. The main question in this context is whether religion or nationality are of importance for explaining risk attitudes. For this purpose, this study employs the German Socio-Economic Panel (GSOEP) to figure out differences in risk attitudes. Another contribution of this article is that is uses a generalized ordered logit model while others use simple linear regression models or simple logit or probit models which are not efficient. The estimations show that the cultural background does indeed have some impact on risk taking behaviour. VL - 2 IS - 2 ER -
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