Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
982238 | The Quarterly Review of Economics and Finance | 2012 | 14 Pages |
Abstract
This paper explores the relationship between the self-declared risk aversion of private investors and their propensity to hold incomplete portfolios of financial assets. The analysis is based on household survey data from the German Socioeconomic Panel (SOEP) that provides a reliable measure of individual attitudes toward financial risk. Our findings suggest that more risk averse households tend to hold incomplete portfolios consisting mainly of a few risk-free assets. We also find that the propensity to acquire additional assets is highly dependent on whether liquidity and safety needs are met.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Nataliya Barasinska, Dorothea Schäfer, Andreas Stephan,