Quotation Stephens, Thomas Alexander, Tyran, Jean-Robert. 2014. Investment Heuristics and Wealth. 9th Nordic Conference on Behavioral and Experimental Economics, Aarhus, Dänemark, 26.11-27.11.




We experimentally investigate heuristics used in investment decisions, and how they relate to real-world wealth. Our subjects are drawn from a large, representative sample of the Danish population, and anonymously matched to official socioeconomic register data. Subjects face a series of tasks in which they may invest in risky assets, but to invest, they must borrow money. By systematically varying the asset returns and borrowing costs, we are able to distinguish between optimisation and biased heuristics. We find that behaviour in the experiment is strongly correlated with net worth, controlling for income, age and other relevant socioeconomic and psychometric characteristics.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title Investment Heuristics and Wealth
Event 9th Nordic Conference on Behavioral and Experimental Economics
Year 2014
Date 26.11-27.11
Country Denmark
Location Aarhus
URL https://ncbee2014.wordpress.com/program/


Stephens, Thomas Alexander (Former researcher)
Tyran, Jean-Robert (Universität Wien, Austria)
Department of Economics (Sausgruber) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5300 Economics (Details)
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