Relative Risk Aversion among the Elderly

TitleRelative Risk Aversion among the Elderly
Publication TypeJournal Article
Year of Publication2004
AuthorsBellante, D, Green, CA
JournalReview of Financial Economics
KeywordsConsumption and Savings, Demographics, Net Worth and Assets, Risk Taking

This paper examines portfolio allocation behavior of the elderly, investigating whether their behavior conforms to Arrow's postulate of increasing relative risk aversion. Additionally, the effects on risk aversion of age, race, gender, education, health status, and the number of children are examined. The source of data is the AHEAD data set that is comprised of households with at least one member aged 70 or over. In the preferred specification, evidence supports a finding of modestly decreasing relative risk aversion and statistical significance for the personal characteristics examined. Implications are drawn for the likely security markets effects of an aging population.

Endnote Keywords

Economics of the Elderly/Elderly/Assets/Portfolio Choice/Risk aversion

Endnote ID


Citation Key6979