The ‘fear factor’: Personal experience and risk aversion in times of crisis

Peter Koudijs, Hans-Joachim Voth, 12 April 2014



To paraphrase Larry Summers, some people are scared – just look around. The crisis of 2007–08 took a toll on a lot of people, investors included. What seemed to be a new age of steady, moderately high growth and stable equity returns suddenly turned into the biggest economic crisis since the 1930s:

Topics: Economic history, Financial markets
Tags: behaviour, crisis, financial markets, lending, risk aversion

Foreign investors and crises: There is no safe haven for all seasons

Maurizio Michael Habib, Livio Stracca, 28 February 2014



The resilience of the international status of the US dollar remains surprising (Frankel 2013). At the peak of the global financial crisis which started in the US, in particular in the last quarter of 2008, US treasury yields fell and the US dollar appreciated. This has created the impression of a stronger demand for US securities in general.

Topics: Financial markets, Global crisis
Tags: asset pricing, financial crisis, global crisis, home bias, portfolio flows, reserve currency, risk aversion, safe haven, US

Shaping risk preferences across time

Alison Booth, Patrick Nolen, Lina Cardona Sosa, 20 February 2012



The majority of experimental studies investigating gender differences in risky choices find that women are less willing to take risks than men. This research is summarised in Eckel and Grossman (2008) and Croson and Gneezy (2009). However, these experimental studies investigating gender differences in risky choices typically do so only at a single point in time.

Topics: Frontiers of economic research, Gender, Labour markets
Tags: competition, risk aversion, sexism

Gender differences in risk aversion: Do single-sex environments affect their development?

Alison Booth, Lina Cardona Sosa, 6 February 2012

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Topics: Education, Labour markets
Tags: education, gender equality, risk aversion

Are married women less risk-averse? If so, why?

Graziella Bertocchi, Costanza Torricelli, Marianna Brunetti, 13 March 2010



A growing literature has explored gender differences in making financial decisions. At the same time, there is a parallel literature on the implications of marital status. This research generally reveals a higher degree of risk aversion among women and single people.

Topics: Financial markets, Labour markets
Tags: gender, marriage, risk aversion

Gender, risk, and competition

Alison Booth, 14 September 2009



It is well known that women are under-represented in high-paying jobs and top-level management positions. Recent work in experimental economics, largely examining college-age men and women attending coeducational universities, has examined to what degree this underrepresentation may be due to innate differences between men and women.

Topics: Frontiers of economic research
Tags: Culture, gender, risk aversion

Can we understand the recent moves of the euro-dollar exchange rate?

Anton Brender, Emile Gagna, Florence Pisani, 21 July 2009



Trying to forecast foreign exchange rates is challenging. Understanding their past behaviour is not much easier. In this respect, the bumpy road followed by the dollar against the euro during the last two years seems to be no exception. Nonetheless, a look at Figure 1 gives some interesting clues.

Topics: Exchange rates
Tags: dollar, euro, foreign exchange, risk aversion

Why did the bankers behave so badly?

Anne Sibert, 18 May 2009



Many people share the blame for the current financial crisis; politicians, supervisors, regulators and even imprudent households and businesses. One group, however, has been judged to be especially guilty; the employees in the financial services sector.

Topics: Financial markets, Frontiers of economic research
Tags: bankers, Behavioural economics, Financial Crisis 2009, risk aversion

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