Income inequality and financial overconfidence.
In this paper, we examine the relationship between income inequality and overconfidence. Using data from the FINRA Foundation's National Financial Capability Study, we measure respondents' self‐perceived and actual investment knowledge and thus identify overconfident individuals. We also identify fo...
| Publicado en: | American Journal of Economics & Sociology Vol. 84; no. 2; pp. 273 - 297 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Mar2025
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=183847824&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 183847824 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00029246 AES jtl: American Journal of Economics & Sociology issn: 00029246 maglogo: Y pubinfo: dt: Mar2025 vid: 84 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 183847824 10.1111/ajes.12603 ppf: 273 ppct: 24 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 350KB tig: atl: Income inequality and financial overconfidence. aug: au: Gottesman, Aron Morey, Matthew affil: Lubin School of Business, Pace University, New York New York, , USA su: Income inequality Satisfaction Risk-taking behavior Financial literacy Financial risk sug: subj: Income inequality Satisfaction Risk-taking behavior Financial literacy Financial risk ab: In this paper, we examine the relationship between income inequality and overconfidence. Using data from the FINRA Foundation's National Financial Capability Study, we measure respondents' self‐perceived and actual investment knowledge and thus identify overconfident individuals. We also identify for each respondent their U.S. state of residence and the corresponding state‐level income inequality. We then examine the relationship between state‐level income inequality and overconfidence of the survey participants. Using a number of controls, several overconfidence measures, and two different datasets we find a positive and significant relationship between income inequality and overconfidence. We also find evidence that income inequality is positively related to financial satisfaction and financial risk taking. Indeed, we find that as inequality increases, poorer individuals increase their risk willingness. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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