Template-type: ReDIF-Paper 1.0
Author-Name: Bellucci, Davide 
Author-Email: davide.bellucci@unito.it   
Author-Name: Fuochi, Giulia  
Author-Email: fuochigiulia@gmail.com 
Author-Name: Conzo, Pierluigi 
Author-Email: pierluigi.conzo@unito.it
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title: Ain’t got no, I got life: Childhood exposure to WW2 and financial risk taking in adult life.
Abstract: Childhood adverse experiences might have long-lasting effects on decisions under uncertainty in adult life. 
Merging the European Survey on Health, Ageing and Retirement with data on conflict events happened during Second World War, 
and relying on region-by-cohort variation in war exposure, we show that warfare exposure during childhood is associated with 
lower financial risk taking in later life. Individuals who experienced war episodes as children hold less – and are less
likely to hold – stocks, but are more likely to hold life insurance, compared to non-exposed individuals. 
Effects are robust to the inclusion of potential mediating factors, and are tested for nonlinearity and heterogeneity. 
In addition, war-exposed respondents show higher resilience to financial shocks, as they react less dramatically to stock market losses. 
By shaping cognitive schemata, the experience of war might have increased the perception of uncertainty and uncontrollability of 
the environment, leading to an overestimation of risks and of the likelihood of negative events.
Length: pages 51
Creation-Date: 2019-01
File-URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2019dip/wp_5_2019.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:201905