Faculty of Economics and Business Administration Publications Database

Risk Aversion and Religion

Noussair, Charles N.
Trautmann, Stefan T.
van de Kuilen, Gijs
Volume: 47
Number: 2
Pages: 165 - 183
Month: October
ISSN-Print: 0895-5646
Link External Source: Online Version
Year: 2013
Keywords: Risk aversion , Religion, Catholicism, Protestantism
Abstract: We use a dataset for a demographically representative sample of the Dutch population that contains a revealed preference risk attitude measure, as well as detailed information about participants’ religious background, to study three issues. First, we find strong confirmatory evidence that more religious people, as measured by church membership or attendance, are more risk averse with regard to financial risks. Second, we obtain some evidence that Protestants are more risk averse than Catholics in such tasks. Third, our data suggest that the link between risk aversion and religion is driven by social aspects of church membership, rather than by religious beliefs themselves.