Individual Values and Household Finances

41 Pages Posted: 20 Jun 2011 Last revised: 22 Nov 2016

See all articles by Fabian Gogolin

Fabian Gogolin

Queen's Management School

Michael M. Dowling

ESC Rennes School of Business

Mark Cummins

Dublin City University Business School

Date Written: November 20, 2016

Abstract

We create individual cultural values measures for households and show that this is an important determinant of their financial behavior. To date, personal cultural values have only been indirectly measured through religion and trust. But these are, at best, an approximation of true cultural values. Applying a holistic framework from the World Values Survey (WVS), we create individual measures of cultural values, and show that the self-expression values of this framework are positively associated with a households' financial decisions. Examining the individual cultural values that make up the WVS model, we further show that happiness, trust, and playing an active role in society, are individually important determinants of household financial decision-making. Our study shows that cultural values can be brought from a generalized national level to the individual level in order to improve our understanding of household financial decision making.

Keywords: household finance, cultural values, religion, World Values Survey

JEL Classification: D14, G11, Z1

Suggested Citation

Gogolin, Fabian and Dowling, Michael M. and Cummins, Mark, Individual Values and Household Finances (November 20, 2016). Applied Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1866508 or http://dx.doi.org/10.2139/ssrn.1866508

Fabian Gogolin

Queen's Management School ( email )

Ridel Hall
Belfast, BT9 5EE
Northern Ireland

Michael M. Dowling (Contact Author)

ESC Rennes School of Business ( email )

Rue Robert d'arbrissel, 2
Rennes, 35000
France

Mark Cummins

Dublin City University Business School ( email )

Dublin 9
Ireland

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