Table 4 Determinants of subjects’ risk...

Table 4

Determinants of subjects’ risk premium. The GLS estimates of a random effects model

Dependent variable: Individual risk premium
Increment	0.071
Increment	(0.113)
Lottery’s expected value	−0.053
Lottery’s expected value	(0.012)
Delay	0.075
Delay	(0.117)
Number of rows in risk task	−0.046*
Number of rows in risk task	(0.013)
L1-L5 order	−0.052
L1-L5 order	(0.126)
Cognitive ability	−0.011
Cognitive ability	(0.032)
Female	−0.068 (0.122)
Age	−0.011
Age	(0.045)
Posgrad	−0.08
Posgrad	(0.0135)
Low income	0.019
Low income	(0.012)
Observations	1.188
$R^{2}$	0.56

Dependent variable: Individual risk premium
Increment	0.071
Increment	(0.113)
Lottery’s expected value	−0.053
Lottery’s expected value	(0.012)
Delay	0.075
Delay	(0.117)
Number of rows in risk task	−0.046*
Number of rows in risk task	(0.013)
L1-L5 order	−0.052
L1-L5 order	(0.126)
Cognitive ability	−0.011
Cognitive ability	(0.032)
Female	−0.068 (0.122)
Age	−0.011
Age	(0.045)
Posgrad	−0.08
Posgrad	(0.0135)
Low income	0.019
Low income	(0.012)
Observations	1.188
$R^{2}$	0.56

Note(s): *p < 0.1, **p < 0.05, ***p < 0.01. Reported standard errors (in parenthesis) account for potential clustering on the session-group level. Increment is equal to one if the subject is assigned to the treatment in which she receives 7 (GBP) before the second round of risk-elicitation tasks (part three) and zero otherwise

Source(s): Table by author

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