Factors Related to Household Risk Tolerance: An Ordered Probit Analysis

Sung, J. & Hanna, S. (1996). Factors related to household risk tolerance: An ordered probit analysis. Consumer Interests Annual, 42, 227-228.

10 Pages Posted: 18 Nov 2018 Last revised: 19 Nov 2018

See all articles by Jamie Sung

Jamie Sung

Independent

Sherman D. Hanna

Ohio State University (OSU)

Date Written: March 27, 1996

Abstract

Risk tolerance plays an important role in each household's optimal portfolio decision. This paper estimates the effects of income and demographic characteristics on risk tolerance by employing ordered probit model. While individual with higher income, more education, self employed or farmer, married and single male were more willing to take financial risks, those age 55 or older were less willing to take financial risks.

Keywords: risk tolerance, risk aversion, Survey of Consumer Finances

JEL Classification: D14,G11

Suggested Citation

Sung, Jamie and Hanna, Sherman D., Factors Related to Household Risk Tolerance: An Ordered Probit Analysis (March 27, 1996). Sung, J. & Hanna, S. (1996). Factors related to household risk tolerance: An ordered probit analysis. Consumer Interests Annual, 42, 227-228.. Available at SSRN: https://ssrn.com/abstract=3273934

Jamie Sung

Independent ( email )

No Address Available

Sherman D. Hanna (Contact Author)

Ohio State University (OSU) ( email )

1787 Neil Avenue
Campbell 265D
Columbus, OH 43210
United States
614-292-4584 (Phone)

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