Geographical variations in risk tolerance and the use of financial instruments: evidence from a multi-jurisdictional survey

Journal article

Abstract:: A substantial body of literature examines the determinants of risk preferences and their impact on risk-taking. However, few studies offer a nuanced understanding of behaviour situated in a cultural and geographical context. Using data from a representative sample survey of working individuals in 11 jurisdictions, this paper addresses this gap by exploring how context influences individual-level determinants of risk preferences. The findings reveal that, despite commonalities, context significantly affects how individual characteristics shape risk preferences and behaviour. Incorporating institutional and cultural factors into our understanding of human decision-making provides a more accurate representation of the geographical diversity of individual behaviour when faced with similar issues.

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Language:: English
Keywords:: risk tolerance

risky behaviour

cultural context

geographical context

decision-making

financial instruments
Pubs id:: 2071422
Local pid:: pubs:2071422
Deposit date:: 2025-01-24

Copyright holder:: Clark et al
Rights statement:: © 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives License (http:// creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited, and is not altered, transformed, or built upon in any way. The terms on which this article has been published allow the posting of the Accepted Manuscript in a repository by the author(s) or with their consent.

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