The rapid aging of Korean society poses a significant challenge, necessitating attention due to its potential economic repercussions. This paper investigates the interplay between age, cohort, and risk-taking attitudes, utilizing data from the Survey of Consumer Finance (SCF) issued by the Federal Reserve spanning the period from 1992 to 2019. Our analysis reveals a negative relationship between age and risk-taking tendencies, which aligns with the life-cycle hypothesis. As individuals age, their propensity for risk-taking diminishes. However, when examining cohort effects, we find a notable shift in the association between individual experiences and risk-taking behavior, particularly in light of the Global Financial Crisis. Before the crisis, individual experiences wielded a significant influence on risk-taking behavior, while this association significantly weakened in the aftermath of the crisis.
1. Introduction
2. Data
3. Empirical Results
4. Conclusion
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