Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/117340 
Year of Publication: 
2015
Series/Report no.: 
IWH Discussion Papers No. 10/2015
Publisher: 
Leibniz-Institut für Wirtschaftsforschung Halle (IWH), Halle (Saale)
Abstract: 
Several scholars analyze the relationship between individuals' willingness to take risks and financial investment decisions. We add to this literature in using data from the German Socio-Economic Panel which allow ruling out that investments in risky assets itself impact on risk attitudes. We show that individuals with a higher willingness to take risks are more likely to hold bonds, stocks, and company assets. When grouping individuals into risk groups, our results reveal that high risk takers are also less likely to own a life insurance. If endogenous adaption of risk attitudes from holding assets in previous years is not taken into account, the impact of risk attitudes on holding risky assets is upward biased.
Subjects: 
risk attitudes
financial investment
portfolio choice
reverse causality
German Socio-Economic Panel
JEL: 
D14
D81
G11
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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