Subjective Beliefs and Individual Risk Preferences in a Structural Model of Portfolio Choice
General Information
Title
Subjective Beliefs and Individual Risk Preferences in a Structural Model of Portfolio Choice
Project Number
135
Abstract
The central research questions are:
1. To what extent do subjective expectations and individual risk preferences drive portfolio choices? What is the main driver behind many households’ reluctancy to invest in risky assets?
2. How well can we understand and predict investment behavior when we structurally model the full decision making procedure of an individual?
3. What are the implications of the findings for standard policy evaluation tools such as life-cycle models of savings and investment?
The project consists of four questionnaires, administered in August 2013, September 2013, March 2014, and October 2014.
1. To what extent do subjective expectations and individual risk preferences drive portfolio choices? What is the main driver behind many households’ reluctancy to invest in risky assets?
2. How well can we understand and predict investment behavior when we structurally model the full decision making procedure of an individual?
3. What are the implications of the findings for standard policy evaluation tools such as life-cycle models of savings and investment?
The project consists of four questionnaires, administered in August 2013, September 2013, March 2014, and October 2014.
Longitudinal Type
Project
Begin date
05-08-2013
End date
28-10-2014
Researcher
Enke, B., Gaudecker, H.M. von
Publisher
CentERdata
Copyright
© 2016 CentERdata
DOI
https://doi.org/10.17026/dans-zqz-f8d3
Publications
How age, gender, net income and education influence the relationship between financial risk tolerance and the decision to opt for a voluntary deductible Vrije Universiteit Amsterdam; Faber, R.
Financial decisions of households under uncertainty University of Bonn; Zimpelmann, C. M.
Stock market beliefs and portfolio choice in the general population Collaborative Research Center Transregio 224, Discussion paper No. 258; Zimpelmann, C.
Skewness expectations and portfolio choice Experimental Economics, 26, 107–144; Drerup, T. H.,
et al.