Association between Behavioral Life-Cycle Constructs and Financial Risk Tolerance of Low-to-Moderate-Income Households
2014
Utilizing data from an Internet survey among low-to-moderate-income households in several states, this study examined the link between behavioral life-cycle (BLC) constructs and financial risk tolerance. The r esults of ordinary least squares regression indicated a positive association between financial risk tolerance and several factors that measured the BLC constructs. Respondents who scored higher in self-control had significantly higher risk tolerance scores. Smaller effects were found for the mental accounting and framing constructs. These results suggest low-to-moderate-income households can benefit from financial education and commitment strategies.
Keywords:
- Correction
- Cite
- Save
- Machine Reading By IdeaReader
57
References
5
Citations
NaN
KQI