Table 1

The variables used in the analysis

VariableDescriptionExpected sign
Dependent
risk_appetiteThis indicates the level of risk taken by each investor year by year according to his/her portfolio composition. It is an ordinal variable which considers three categories: 0 indicates low risk tolerance; 1 indicates medium risk tolerance; 2 indicates high risk tolerance 
Independent
northDummy variable: 1 if the individual lives in the north of Italy+
center-southDummy variable: 1 if the individual lives in the center or in the south of Italy
unmarried_maleDummy variable: 1 if the individual is a single, divorced, separated or widowed male; 0 otherwise+
unmarried_femaleDummy variable: 1 if the individual is a single, divorced, separated or widowed female; 0 otherwise
married_maleDummy variable: 1 if the individual is a married male (legally or defacto); 0 otherwise+/−
married_femaleDummy variable: 1 if the individual is a married female (legally or defacto); 0 otherwise+/−
ageAge of each investor
age2Squared value of the age of each investor 
low_eduDummy Variable: 1 if the individual has no education or if he/she did not complete high school (low level of education)
mid_eduDummy Variable: 1 if the individual completed high school (medium level of education)+/−
high_eduDummy Variable: 1 if the individual has a degree or equivalent (high level of education)+
self-employedDummy Variable: 1 if the individual is self-employed+
employedDummy Variable: 1 if the individual is salaried+/−
retiredDummy Variable: 1 if the individual is retired
low_wealthDummy variable: 1 if the individual' level of wealth is up to 99,999 euros
mid_wealthDummy variable: 1 if the individual' level of wealth is from 100,000 euros to 500,000 euros+/−
high_wealthDummy variable: 1 if the individual's level of wealth is over 500,000 euros+
2003, 2004, …Time dummies from 2003 to 2017+/−

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