The variables used in the analysis
| Variable | Description | Expected sign |
|---|---|---|
| Dependent | ||
| risk_appetite | This 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 | ||
| north | Dummy variable: 1 if the individual lives in the north of Italy | + |
| center-south | Dummy variable: 1 if the individual lives in the center or in the south of Italy | – |
| unmarried_male | Dummy variable: 1 if the individual is a single, divorced, separated or widowed male; 0 otherwise | + |
| unmarried_female | Dummy variable: 1 if the individual is a single, divorced, separated or widowed female; 0 otherwise | – |
| married_male | Dummy variable: 1 if the individual is a married male (legally or defacto); 0 otherwise | +/− |
| married_female | Dummy variable: 1 if the individual is a married female (legally or defacto); 0 otherwise | +/− |
| age | Age of each investor | – |
| age2 | Squared value of the age of each investor | |
| low_edu | Dummy Variable: 1 if the individual has no education or if he/she did not complete high school (low level of education) | – |
| mid_edu | Dummy Variable: 1 if the individual completed high school (medium level of education) | +/− |
| high_edu | Dummy Variable: 1 if the individual has a degree or equivalent (high level of education) | + |
| self-employed | Dummy Variable: 1 if the individual is self-employed | + |
| employed | Dummy Variable: 1 if the individual is salaried | +/− |
| retired | Dummy Variable: 1 if the individual is retired | – |
| low_wealth | Dummy variable: 1 if the individual' level of wealth is up to 99,999 euros | – |
| mid_wealth | Dummy variable: 1 if the individual' level of wealth is from 100,000 euros to 500,000 euros | +/− |
| high_wealth | Dummy variable: 1 if the individual's level of wealth is over 500,000 euros | + |
| 2003, 2004, … | Time dummies from 2003 to 2017 | +/− |
| Variable | Description | Expected sign |
|---|---|---|
| risk_appetite | This 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 | |
| north | Dummy variable: 1 if the individual lives in the north of Italy | + |
| center-south | Dummy variable: 1 if the individual lives in the center or in the south of Italy | – |
| unmarried_male | Dummy variable: 1 if the individual is a single, divorced, separated or widowed male; 0 otherwise | + |
| unmarried_female | Dummy variable: 1 if the individual is a single, divorced, separated or widowed female; 0 otherwise | – |
| married_male | Dummy variable: 1 if the individual is a married male (legally or | +/− |
| married_female | Dummy variable: 1 if the individual is a married female (legally or | +/− |
| age | Age of each investor | – |
| age2 | Squared value of the age of each investor | |
| low_edu | Dummy Variable: 1 if the individual has no education or if he/she did not complete high school (low level of education) | – |
| mid_edu | Dummy Variable: 1 if the individual completed high school (medium level of education) | +/− |
| high_edu | Dummy Variable: 1 if the individual has a degree or equivalent (high level of education) | + |
| self-employed | Dummy Variable: 1 if the individual is self-employed | + |
| employed | Dummy Variable: 1 if the individual is salaried | +/− |
| retired | Dummy Variable: 1 if the individual is retired | – |
| low_wealth | Dummy variable: 1 if the individual' level of wealth is up to 99,999 euros | – |
| mid_wealth | Dummy variable: 1 if the individual' level of wealth is from 100,000 euros to 500,000 euros | +/− |
| high_wealth | Dummy 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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