An Analysis Of The Determinants Of Risk Attitudes In Ireland And The United Kingdom

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In this paper the authors avail of new data in studies of financial capability conducted separately in the United Kingdom and Ireland to model the determinants of individuals' attitudes to risk. These risk attitudes are explored explicitly in the context of savings and investments and are modeled on the basis of socio-economic characteristics such as age, gender, region of residence and educational attainment. Furthermore, they explore the relatively complex relationship between risk attitudes and proxies of individual's wealth levels in the context of potential reverse causation.