| |
Portfolio Risk
|
Equity Share
|
Own Business
|
Alcohol
|
Smoking
|
|---|
| |
\({\hat {\delta }}_{p}\)
|
R
2
|
ΔR
2
|
\({\hat {\delta }}_{p}\)
|
R
2
|
ΔR
2
|
\({\hat {\delta }}_{p}\)
|
R
2
|
ΔR
2
|
\({\hat {\delta }}_{p}\)
|
R
2
|
ΔR
2
|
\({\hat {\delta }}_{p}\)
|
R
2
|
ΔR
2
|
|---|
|
Risk General
|
|
σ
m2= 0
|
0.424***
|
0.024
|
0.003
|
0.010***
|
0.024
|
0.005
|
0.079***
|
−
|
−
|
0.018***
|
−
|
−
|
0.018**
|
−
|
−
|
| |
(0.142)
| | |
(0.004)
| | |
(0.009)
| | |
(0.006)
| | |
(0.009)
| | |
|
σ
m2 > 0
|
0.453***
|
0.026
|
0.004
|
0.010***
|
0.026
|
0.007
|
0.103***
|
−
|
−
|
0.022***
|
−
|
−
|
0.023*
|
−
|
−
|
| |
(0.182)
| | |
(0.005)
| | |
(0.011)
| | |
(0.008)
| | |
(0.012)
| | |
|
Risk Financial
|
|
σ
m2= 0
|
0.987***
|
0.040
|
0.020
|
0.020***
|
0.041
|
0.023
|
0.072***
|
−
|
−
|
0.018***
|
−
|
−
|
0.004
|
−
|
−
|
| |
(0.132)
| | |
(0.004)
| | |
(0.009)
| | |
(0.006)
| | |
(0.009)
| | |
|
σ
m2 > 0
|
1.242***
|
0.052
|
0.031
|
0.027***
|
0.061
|
0.043
|
0.093***
|
−
|
−
|
0.025***
|
−
|
−
|
0.007
|
−
|
−
|
| |
(0.177)
| | |
(0.005)
| | |
(0.011 )
| | |
(0.008)
| | |
(0.012)
| | |
|
Risk HRS
|
|
σ
m2= 0
|
0.697***
|
0.029
|
0.009
|
0.010**
|
0.024
|
0.004
|
0.091***
|
−
|
−
|
0.007
|
−
|
−
|
−0.009
|
−
|
−
|
| |
(0.152)
| | |
(0.005)
| | |
(0.009)
| | |
(0.006)
| | |
(0.010)
| | |
|
σ
m2 > 0
|
1.070***
|
0.042
|
0.021
|
0.016**
|
0.034
|
0.013
|
0.145***
|
−
|
−
|
0.013
|
−
|
−
|
−0.009
|
−
|
−
|
| |
(0.242)
| | |
(0.008)
| | |
(0.015)
| | |
(0.010)
| | |
(0.016)
| | |
- NOTES: This table reports the KSS estimates of the effects of risk attitudes on the five outcome variables given in the column headings and the KSS R
2 for the model with measurement-error adjustment (σ
m2 > 0), as well as the OLS estimates and R
2 for the model without adjustment (σ
m2 = 0). 30 regressions were run to generate these results (three risk variables × five outcomes × two). Results are for males only. ΔR
2 is the incremental R
2 from including the risk variable in the regression. R
2 and ΔR
2 are not shown for Own Business, Alcohol, and Smoking, because these are binary dependent variables. All specifications include a constant and controls for birth year, birth weight, log income, marital status, years of education, and cognitive ability
-
* Significant at 10% level; ** significant at 5% level; *** significant at 1% level