Household risk taking after the financial crisis

Necker S, Ziegelmeyer M (2016)

Publication Type: Journal article

Publication year: 2016

Journal

Quarterly Review of Economics and Finance Elsevier BV

Book Volume: 59

Pages Range: 141-160

DOI: 10.1016/j.qref.2015.03.006

Abstract

This study investigates whether and how the crisis in 2008/2009 affects households' risk attitudes, subjective risk and return expectations, and planned financial risk taking using the German SAVE study. Households' wealth change from end-2007 to end-2009 is not found to have an effect. However, households that attribute losses to the crisis decreased their risk tolerance and planned risk taking; the probability of expecting an increase in risks and returns is increased. According to economic theory, wealth changes attributed to a dramatic event should not have a different effect than other wealth changes. The results suggest an emotional reaction.

Authors with CRIS profile

Sarah Necker

Additional Organisation(s)

Lehrstuhl für Volkswirtschaftslehre

Involved external institutions

Banque centrale du Luxembourg LU Luxembourg (LU) Walter Eucken Institut DE Germany (DE)

How to cite

APA:

Necker, S., & Ziegelmeyer, M. (2016). Household risk taking after the financial crisis. Quarterly Review of Economics and Finance, 59, 141-160. https://dx.doi.org/10.1016/j.qref.2015.03.006

MLA:

Necker, Sarah, and Michael Ziegelmeyer. "Household risk taking after the financial crisis." Quarterly Review of Economics and Finance 59 (2016): 141-160.

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