Saving and risk taking

https://doi.org/10.1016/0167-4870(91)90028-RGet rights and content

Abstract

Saved money can be used as a protection against economic risks, and different forms of saving may be risk-filled to different degrees. Therefore, the risk preferences of individuals can be assumed to affect their saving. The relationship between the propensity to take risks and saving habits is analyzed in this study. The propensity to take risks was measured by subjects' answers to questions about their risk taking in various situations. The results indicate that cautious subjects tend to have a lower burden of debt and more money in bank accounts than do less cautious subjects. No significant relationships are found between the subjects' propensity to take risks and their total net capital and their ability to manage sudden, extra expenditures.

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There are more references available in the full text version of this article.

Cited by (0)

The research was financed by the Swedish Savings Banks Association.

Author's address: O. Dahlbäck, Dept. of Business Administration, University of Stockholm, S-106 91 Stockholm, Sweden.

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