Abstract
The degree of risk-aversion determines portfolio holdings and subsequently the distribution of wealth. Do we inherit our preferences, or are they determined randomly or through experience? Can preferences be "learned"? The empirically observed Pareto wealth distribution at the high-wealth range may provide an answer to these questions. We show that the Pareto wealth distribution implies an upper bound on the role of heredity in determining risk-aversion.
| Original language | English |
|---|---|
| Pages (from-to) | 157-168 |
| Number of pages | 12 |
| Journal | Journal of Mathematical Economics |
| Volume | 41 |
| Issue number | 1-2 |
| DOIs | |
| State | Published - Feb 2005 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 1 No Poverty -
SDG 10 Reduced Inequalities
Keywords
- Heredity
- Pareto
- Risk-aversion
- Wealth distribution
Fingerprint
Dive into the research topics of 'Is risk-aversion hereditary?'. Together they form a unique fingerprint.Cite this
- APA
- Author
- BIBTEX
- Harvard
- Standard
- RIS
- Vancouver