000			01237nam a22001577a 4500
008			190312b xxu||||| |||| 00| 0 eng d
022			_a0304-405X
245			_aTime varying risk aversion / by Luigi Guiso, Paola Sapienza, Luigi Zingales _cLuigi Guiso, Paola Sapienza, Luigi Zingales
260			_aAmsterdam _bElsevier _cJune 2018
300			_aPages 403-421
440			_aJournal of Financial Economics _v128 (3) _x0304-405X
500			_aAbstract Exploiting portfolio data and repeated surveys of an Italian bank's clients, we test whether investors’ risk aversion increases following the 2008 crisis. We find that, after the crisis, both qualitative and quantitative measures of risk aversion increase substantially and that affected individuals divest more stock. We investigate four explanations: changes in wealth, expected income, perceived probabilities, and emotion-based changes of the utility function. Our data are inconsistent with the first two channels, while they suggest that fear is a potential mechanism underlying financial decisions, whether by increasing the curvature of the utility function or the salience of negative outcomes.
690			_aRisk aversion
690			_aFinancial crisis
942			_2lcc _cSE
999			_c361341 _d361341