The likelihood of divorce and the riskiness of financial decisions

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Show simple item record Stark, Oded Szczygielski, Krzysztof 2019-07-02T06:40:41Z 2019-07-02T06:40:41Z 2019-07-02
dc.identifier.other 1668301407 de_DE
dc.identifier.uri de_DE
dc.description.abstract We link causally the riskiness of men’s management of their finances with the probability of their experiencing a divorce. Our point of departure is that when comparing single men to married men, the former manage their finances in a more aggressive (that is, riskier) manner. Assuming that single men believe that low relative wealth has a negative effect on their standing in the marriage market and that they care about their standing in that market more than married men do, we find that a stronger distaste for low relative wealth translates into reduced relative risk aversion and, consequently, into riskier financial behavior. With this relationship in place we show how this difference varies depending on the “background” likelihood of divorce and, hence, on the likelihood of re-entry into the marriage market: married men in environments that are more prone to divorce exhibit risk-taking behavior that is more similar to that of single men than married men in environments that are little prone to divorce. We offer a theoretical contribution that helps inform and interpret empirical observations and regularities and can serve as a guide for follow-up empirical work, having established and identified the direction of causality. en
dc.language.iso en de_DE
dc.publisher Universität Tübingen de_DE
dc.rights ubt-podno de_DE
dc.rights.uri de_DE
dc.rights.uri en
dc.subject.classification Ehescheidung , Risiko , Wahrscheinlichkeit de_DE
dc.subject.ddc 330 de_DE
dc.subject.other Men’s preferences towards risk en
dc.subject.other Risk-taking behavior en
dc.subject.other Concern at having low relative wealth en
dc.subject.other Relative and absolute risk aversion en
dc.subject.other Marital-based difference in attitudes towards risk en
dc.subject.other Likelihood of divorce en
dc.title The likelihood of divorce and the riskiness of financial decisions en
dc.type Aufsatz de_DE
utue.publikation.fachbereich Wirtschaftswissenschaften de_DE
utue.publikation.fakultaet 6 Wirtschafts- und Sozialwissenschaftliche Fakultät de_DE
utue.publikation.source University of Tübingen Working Papers in Economics and Finance ; No. 121 de_DE


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