TY - UNPB
T1 - What drives the association between health and portfolio choice?
AU - Kronenberg, C
AU - van Kippersluis, Hans
AU - Rohde, Kirsten I.M.
PY - 2014
Y1 - 2014
N2 - There is a persistent association between health and portfolio choice, but hardly anything is known about the underlying sources of heterogeneity: what makes healthier individuals hold more risky assets? This paper uses rich Dutch longitudinal data to take into account and explain unobserved heterogeneity in the association between health and portfolio choice. We show that the association largely reflects unobserved heterogeneity, which is driven partly by behavioural variables. Yet even when adding an extensive set of behavioural variables including risk aversion, stock aversion, loss aversion, time preferences, and mental accounting, the association between health and portfolio choice does not completely vanish.
AB - There is a persistent association between health and portfolio choice, but hardly anything is known about the underlying sources of heterogeneity: what makes healthier individuals hold more risky assets? This paper uses rich Dutch longitudinal data to take into account and explain unobserved heterogeneity in the association between health and portfolio choice. We show that the association largely reflects unobserved heterogeneity, which is driven partly by behavioural variables. Yet even when adding an extensive set of behavioural variables including risk aversion, stock aversion, loss aversion, time preferences, and mental accounting, the association between health and portfolio choice does not completely vanish.
KW - health
KW - portfolio choice
KW - panel data
KW - elderly
U2 - 10.2139/ssrn.2551770
DO - 10.2139/ssrn.2551770
M3 - Working paper
T3 - Netspar Discussion Paper
BT - What drives the association between health and portfolio choice?
PB - Netspar
CY - Netherlands
ER -