HOW THE COVID-19 PANDEMIC INFLUENCES RISK TOLERANCE OVER LIFETIME

CYRIL LAŠŠU

https://doi.org/10.53465/EDAMBA.2021.9788022549301.277-285

 

Abstract: An individual´s attitude to risk is relatively stable throughout one’s lifetime, but individual risk tolerance changes over time. How much it changes regarding financial decision-making primarily depends on individual risk preferences, but can also be influenced by exogenous shocks like a pandemic. The ongoing Covid-19 pandemic is a good example: It has created a tremendous uncertainty globally, resulting in, e. g., emotional reactions at the stock market, many missed job opportunities in the labor market, and many damaged business opportunities.

Keywords: risk tolerance, COVID-19, behavioral economics

JEL classification: E71, D91

Fulltext: PDF

Online publication date: 12 May 2022

 

To cite this article (APA style): 

Laššu, C. (2022). How the Covid-19 Pandemic Influences Risk Tolerance over Lifetime. Proceedings from the EDAMBA 2021 conference, 277 – 285. https://doi.org/10.53465/EDAMBA.2021.9788022549301.277-285