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Are Tall People Less Risk Averse Than Others?

Year:    2013

Author:    Hübler, Olaf

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 133 (2013), Iss. 1 : pp. 23–42

Abstract

This paper examines the question of whether risk aversion of prime-age workers is negatively correlated with human height to a statistically significant degree. A variety of estimation methods, tests and specifications yield robust results that permit one to answer this question in the affirmative. Hausman-Taylor panel estimates, however, reveal that height effects disappear if personality traits and skills, parents' behaviour, and interactions between environment and individual abilities appear simultaneously. Height is a good proxy for all these influences if they are not observable. Not just one factor but a combination of several traits and interaction effects can describe the time-invariant individual effect in a panel model of risk attitude.

Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.3790/schm.133.1.23

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 133 (2013), Iss. 1 : pp. 23–42

Published online:    2013-01

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    20

Keywords:    D90 J13 J24

Author Details

Hübler, Olaf