Accessibility navigation


Growth, entrepreneurship, and risk-tolerance: a risk-income paradox

Bouchouicha, R. and Vieider, F. M. (2019) Growth, entrepreneurship, and risk-tolerance: a risk-income paradox. Journal of Economic Growth. ISSN 1573-7020

[img] Text - Accepted Version
· Restricted to Repository staff only until 23 May 2020.

1MB

It is advisable to refer to the publisher's version if you intend to cite from this work. See Guidance on citing.

To link to this item DOI: 10.1007/s10887-019-09168-0

Abstract/Summary

Recent papers have modeled the prevalence of risk-tolerance as shaped by growth, making testable predictions about the distribution of risk-tolerance across the globe. We test these predictions using a dataset containing a survey question capturing people’s risk-tolerance for representative samples from 78 countries. We find a negative between-country correlation between risk-tolerance and GDP per capita. Together with the positive within-country correlation between risk-tolerance and income, this results in a risk-income paradox. We further find a negative interaction effect of risk-tolerance and GDP on fertility. These findings provide support for endogenous-preference models of economic growth.

Item Type:Article
Refereed:Yes
Divisions:Henley Business School > Real Estate and Planning
ID Code:83787
Publisher:Springer

University Staff: Request a correction | Centaur Editors: Update this record

Page navigation