Risk preference dynamics around life events

Kettlewell, N

Risk preference dynamics around life events

Kettlewell, N

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Publication Type:: Journal Article
Citation:: Journal of Economic Behavior and Organization, 2019, 162 pp. 66 - 84
Issue Date:: 2019-06-01

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Field	Value	Language
dc.contributor.author	Kettlewell, N https://orcid.org/0000-0002-0478-1372	en_US
dc.date.accessioned	2020-04-06T01:26:14Z
dc.date.available	2020-04-06T01:26:14Z
dc.date.issued	2019-06-01	en_US
dc.identifier.citation	Journal of Economic Behavior and Organization, 2019, 162 pp. 66 - 84	en_US
dc.identifier.issn	0167-2681	en_US
dc.identifier.uri	http://hdl.handle.net/10453/139813
dc.description.abstract	© 2019 Elsevier B.V. Using a panel of Australians I estimate the dynamic relationship between common life events and risk preferences. Changes in financial circumstances, parenthood and family loss predict changes in risk preferences. Importantly the effects are largest closer to the event date and disappear over time. This supports a model of preference formation where risk preferences are (trend)stable but fluctuations are at least partly deterministic. The linkages between life events and risk preferences are explored. There is little evidence that changes in consumption, state dependence, or changes in mental health and mood explain the results. However, emotional stability is an influential moderator suggesting that emotions play an important role.	en_US
dc.relation.ispartof	Journal of Economic Behavior and Organization	en_US
dc.relation.isbasedon	10.1016/j.jebo.2019.04.018	en_US
dc.rights	info:eu-repo/semantics/embargoedAccess
dc.subject.classification	Economics	en_US
dc.title	Risk preference dynamics around life events	en_US
dc.type	Journal Article
utslib.citation.volume	162	en_US
utslib.for	1401 Economic Theory	en_US
utslib.for	1402 Applied Economics	en_US
utslib.for	1403 Econometrics	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Economics Discipline
utslib.copyright.status	open_access	*
utslib.copyright.embargo	2022-06-01T00:00:00+1000
pubs.publication-status	Published	en_US
pubs.volume	162	en_US

Abstract:

© 2019 Elsevier B.V. Using a panel of Australians I estimate the dynamic relationship between common life events and risk preferences. Changes in financial circumstances, parenthood and family loss predict changes in risk preferences. Importantly the effects are largest closer to the event date and disappear over time. This supports a model of preference formation where risk preferences are (trend)stable but fluctuations are at least partly deterministic. The linkages between life events and risk preferences are explored. There is little evidence that changes in consumption, state dependence, or changes in mental health and mood explain the results. However, emotional stability is an influential moderator suggesting that emotions play an important role.

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http://hdl.handle.net/10453/139813