Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73167
Authors: 
Köbrich Leon, Anja
Pfeifer, Christian
Year of Publication: 
2013
Series/Report no.: 
University of Lüneburg Working Paper Series in Economics 269
Abstract: 
Individual preferences with respect to risk taking play an important role in financial economic behaviour and, hence, in financial markets. Using German microdata, we argue that individual religiosity is a determinant of household willingness to take risks, since it shapes relevant individual values and norms. Controlling for overall level of general risk assessment, firstly, we find that different religious affiliations are associated with distinct financial risk-taking attitudes. Adherents to the two main Christian religions in Germany (Protestants and Catholics) are less risk-tolerant in general, but not in financial concerns. The same holds for Muslims. Further, religious involvement is associated with higher risk aversion. Secondly, we examine the extent to which religion-induced heterogeneity in risk-taking preferences actually influences investment decisions of individuals in Germany. We provide evidence suggesting that religious beliefs and religious involvement influence individual portfolio decisions.
Subjects: 
church
religion
risk aversion
portfolio choice
JEL: 
D14
G11
Z12
Document Type: 
Working Paper

Files in This Item:
File
Size
318.87 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.