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dc.contributor.authorKumar, Sanjeev
dc.date.accessioned2017-03-21T05:52:44Z
dc.date.available2017-03-21T05:52:44Z
dc.date.copyright2016-12-16
dc.date.issued2016-12-16
dc.identifier.urihttp://hdl.handle.net/11718/19106
dc.descriptionThe R & P seminar held at Wing 11 Committee Room, IIM Ahmedabad on December 16, 2016 by Dr. Sanjeev Kumar, Yale School of Public Health, Yale University, USA on "Does Health Influence Risk Preference?"en_US
dc.description.abstractThis paper investigates whether self-assessed health (SAH) status—a measure of health stock—influences the risk preference of an individual. Using the National Longitudinal Study of Adolescent Health (Add Health), we estimate that better health during adolescence is associated with more willingness to take risks when people are around age 30. Moreover, the experience of a reduction in their health stock between adolescence and young adulthood is even more strongly associated with willingness to take risk later in their lives—a finding that provides a novel pathway through which individual’s loss aversion gets operationalized. These findings are robust to regression specifications—linear probability, fixed effects, and generalized ordered logistic regression models—as well as to the inclusion of exogenous personal characteristics—variables that are shown to be related to both health and various measures of risk in the existing literature. Our findings remained robust even after including two heritable measures of personality—neuroticism and conscientiousness—that could have bearing on both health and risk preference. These findings are quite pertinent in building a better understanding of the processes that govern deepening of the market mechanism and the processes leading to policy formation. If similar findings hold for older populations, then it potentially establishes a link between health and the future of financial markets and the pace of change in policy regimes.en_US
dc.language.isoenen_US
dc.publisherIndian Institute of Management, Ahmedabaden_US
dc.subjectSAHen_US
dc.subjectSelf-assessed healthen_US
dc.subjectHealth influenceen_US
dc.subjectRisk preferenceen_US
dc.titleDoes Health Influence Risk Preference?en_US
dc.typeVideoen_US


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