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dc.contributor.authorGREVENBROCK, Nils
dc.date.accessioned2019-10-23T10:17:35Z
dc.date.available2019-10-23T10:17:35Z
dc.date.issued2019
dc.identifier.issn1830-7728
dc.identifier.urihttp://hdl.handle.net/1814/64680
dc.description.abstractIn this paper I analyze the relationship between dispositional optimism (pessimism) and saving decisions. The key contribution of this paper is the use of direct psychometric measures of psychological dispositions as available in the Health and Retirement Study (HRS). Previous studies use the difference between subjective survival beliefs and objective survival probabilities as a proxy for these psychological dispositions. I argue that the proxy is not a satisfactory measure of dispositional optimism ̶ in particular for the older population. Additionally, the psychometric measures allow me to control for optimism and pessimism separately. The psychometric measure of dispositional pessimism is shown to be significantly related to wealth holdings and stock market participation ̶ optimism is not significantly related. A one standard deviation decrease in pessimism is associated with holding 71 US-$ more overall wealth and an increase in the likelihood of holding stocks of 2.5%.en
dc.format.mimetypeapplication/pdfen
dc.language.isoenen
dc.publisherEuropean University Instituteen
dc.relation.ispartofseriesEUI MWPen
dc.relation.ispartofseries2019/09en
dc.rightsinfo:eu-repo/semantics/openAccessen
dc.subjectHousehold saving decisionsen
dc.subjectPsychological biasesen
dc.subjectMeasuring optimismen
dc.subjectD14en
dc.subjectD15en
dc.subjectG11en
dc.subjectG41en
dc.subjectG51en
dc.titleDispositional optimism (and pessimism) and saving decisionsen
dc.typeWorking Paperen


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