Do sources of money matter in risk-taking behaviour?

Jean-François Gajewski (1) , Luc Meunier (2) , Sima Ohadi

1 Laboratoire de Recherche Magellan
2 ESSCA Research Lab

Assuming that money is fungible, income and wealth affect risk aversion. In the present study, we investigate whether the source of money affects risk-related decision-making. We use the percentage of temporary income and sources of income to capture the heterogeneity of risk-taking behaviour. The results indicate the significant and robust role of the temporary portion of income in explaining risk-taking behaviour: a 1% increase in temporary income corresponds to up to a 12.7% increase in risk-taking. Furthermore, having multiple sources of money is associated with greater risk-taking, and the origin of money matters with regards to risk-taking.

Mots clés: Risk-taking; risk aversion; financial decision-making; source of income

Domaines: Economies et finances; Gestion et management

Jean-François Gajewski, Luc Meunier, Sima Ohadi. Do sources of money matter in risk-taking behaviour?. Applied Economics, 2021, pp.1-24. ⟨10.1080/00036846.2021.1963412⟩. ⟨hal-03400444⟩