On 18th April 2016 (1-2pm) Lars Schwettmann, member of the Faculty of Business Administration and Economics at the University of Halle-Wittenberg will give a presentation about „Risk Preferences and the Financial Crisis " in Q4.245. Afterwards, Mr. Schwettmann will be available for questions and discussions. His presentation is part of the Economics and Management series. For further information and dates of the seminar series: http://wiwi.uni paderborn.de/department1/seminar-in-economics-management-seam/.
We use data of the German Socio-Economic Panel (SOEP) from the years 2004, 2009, and 2014, to investigate the impact of the recent financial crisis on risk preferences in different domains including general risk attitudes, risk-taking in occupational or career matters, and trust. Our results of pooled OLS and fixed effects models show that at the peak of the crisis in 2009 the willingness to take risks sharply drops in all contexts compared to 2004, whereas it (somewhat) recovers in 2014. These results hold even if we control for various individual characteristics and macro effects at the federal state level. Fur-thermore, interaction effects reveal that in some domains the time effect differs for certain exogenous variables such as age or gender. We conclude that risk preferences are not stable over time in several relevant domains and that certain socio-demographic groups differ with respect to the magnitude of the drop in their willingness to take risks and the degree of recovery after the crisis.