Risk Incomprehension and Its Economic Consequences
© 2016 Informa UK Limited, trading as Taylor & Francis Group.Almost all theoretical and empirical studies implicitly assume that every economic agent understands the concept of risk. We exploited a unique feature of the Indonesian Family Life Survey and argued that this assumption may not apply...
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| Format: | Journal Article |
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Routledge
2016
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| Online Access: | http://hdl.handle.net/20.500.11937/51865 |
| _version_ | 1848758792947236864 |
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| author | Sohn, Kitae |
| author_facet | Sohn, Kitae |
| author_sort | Sohn, Kitae |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | © 2016 Informa UK Limited, trading as Taylor & Francis Group.Almost all theoretical and empirical studies implicitly assume that every economic agent understands the concept of risk. We exploited a unique feature of the Indonesian Family Life Survey and argued that this assumption may not apply to the developing world. A third of working men failed to understand the concept of risk, and this incomprehension did not result from a mistake or a preference for simple answers. Moreover, after applying OLS, we found that relative to risk comprehensive men, risk incomprehensive men earned 11.9 per cent less and possessed household assets worth 9.8 per cent less. |
| first_indexed | 2025-11-14T09:49:38Z |
| format | Journal Article |
| id | curtin-20.500.11937-51865 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:49:38Z |
| publishDate | 2016 |
| publisher | Routledge |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-518652017-09-13T15:36:42Z Risk Incomprehension and Its Economic Consequences Sohn, Kitae © 2016 Informa UK Limited, trading as Taylor & Francis Group.Almost all theoretical and empirical studies implicitly assume that every economic agent understands the concept of risk. We exploited a unique feature of the Indonesian Family Life Survey and argued that this assumption may not apply to the developing world. A third of working men failed to understand the concept of risk, and this incomprehension did not result from a mistake or a preference for simple answers. Moreover, after applying OLS, we found that relative to risk comprehensive men, risk incomprehensive men earned 11.9 per cent less and possessed household assets worth 9.8 per cent less. 2016 Journal Article http://hdl.handle.net/20.500.11937/51865 10.1080/00220388.2016.1166208 Routledge restricted |
| spellingShingle | Sohn, Kitae Risk Incomprehension and Its Economic Consequences |
| title | Risk Incomprehension and Its Economic Consequences |
| title_full | Risk Incomprehension and Its Economic Consequences |
| title_fullStr | Risk Incomprehension and Its Economic Consequences |
| title_full_unstemmed | Risk Incomprehension and Its Economic Consequences |
| title_short | Risk Incomprehension and Its Economic Consequences |
| title_sort | risk incomprehension and its economic consequences |
| url | http://hdl.handle.net/20.500.11937/51865 |