<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This paper studies the relationship between risk propensity, education and financial literacy. The results of the empirical investigation confirm the importance of the key explanatory variables of education and financial competence. Since they are both included in the model, the different roles of each are singled out. In particular, while education turns out to be a factor contributing to raising risk tolerance, financial literacy tends to reduce risk propensity. Risk attitude is evaluated by self-reported assessment and modeled through cumulative logit models. In order to handle anomalous data, M estimators with a bounded influence function are considered.</p>
</abstract>

This paper studies the relationship between risk propensity, education and financial literacy. The results of the empirical investigation confirm the importance of the key explanatory variables of education and financial competence. Since they are both included in the model, the different roles of each are singled out. In particular, while education turns out to be a factor contributing to raising risk tolerance, financial literacy tends to reduce risk propensity. Risk attitude is evaluated by self-reported assessment and modeled through cumulative logit models. In order to handle anomalous data, M estimators with a bounded influence function are considered.

Modeling Financial Risk Attitude: The Role of Education And Financial Literacy

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Modeling Financial Risk Attitude: The Role of Education And Financial Literacy"}

This paper studies the relationship between risk propensity, education and financial literacy. The results of the empirical investigation confirm the...

Modeling Financial Risk Attitude: The Role of Education And Financial Literacy

Published Online: Jun 20, 2024

Page range: 1 - 14

Received: Feb 08, 2024

Accepted: Apr 05, 2024

DOI: https://doi.org/10.2478/fiqf-2024-0008

Keywords
Financial Literacy, Ordinal Response Models, Risk Attitude, Robust Estimation

© 2024 Maria Iannario et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Modeling Financial Risk Attitude: The Role of Education And Financial Literacy

Published Online: Jun 20, 2024

Page range: 1 - 14

Received: Feb 08, 2024

Accepted: Apr 05, 2024

DOI: https://doi.org/10.2478/fiqf-2024-0008

KeywordsFinancial Literacy, Ordinal Response Models, Risk Attitude, Robust Estimation

© 2024 Maria Iannario et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Financial Literacy, Ordinal Response Models, Risk Attitude, Robust Estimation