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Publisher DOI: 10.1007/s11166-020-09340-7
Title: The development of risk aversion and prudence in Chinese children and adolescents
Language: English
Authors: Heinrich, Timo  
Shachat, Jason M. 
Keywords: Age effects;Children;Experimental economics;Prudence;Risk aversion;Transmission of preferences
Issue Date: 1-Dec-2020
Publisher: Springer Science + Business Media B.V
Source: Journal of Risk and Uncertainty 3 (61): 263-287 (2020-12-01)
Journal: Journal of risk and uncertainty 
Abstract (english): 
This study experimentally evaluates the risk preferences of children and adolescents living in an urban Chinese environment. We use a simple binary choice task that tests risk aversion, as well as prudence. This is the first test for prudence in children and adolescents. Our results reveal that subjects from grades 5 to 11 (10 to 17 years) make mostly risk-averse and prudent choices. The choices of 3rd graders (8 to 9 years) do not differ statistically from risk neutral benchmarks, but at the same time they make mostly prudent choices. We also find evidence for a transmission of risk preferences. There is positive correlation between all children’s and their parents’ tendency to make risk-averse choices. There is also positive correlation between girls’ and their parents’ tendency to make prudent choices.
DOI: 10.15480/882.3287
ISSN: 0895-5646
Institute: Digital Economics W-5 
Document Type: Article
Project: Projekt DEAL 
More Funding information: Open Access funding enabled and organized by Projekt DEAL.
License: CC BY 4.0 (Attribution) CC BY 4.0 (Attribution)
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