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@article{ART003063819},
author={KIM DAEHWAN and Dong-Hwa Lee},
title={Can Risk Preference Lead to Greater Wealth Accumulation?},
journal={Korea Real Estate Review},
issn={2092-5395},
year={2024},
volume={34},
number={1},
pages={23-39},
doi={10.35136/krer.34.1.2}

TY - JOUR
AU - KIM DAEHWAN
AU - Dong-Hwa Lee
TI - Can Risk Preference Lead to Greater Wealth Accumulation?
JO - Korea Real Estate Review
PY - 2024
VL - 34
IS - 1
PB - korea real estate research institute
SP - 23
EP - 39
SN - 2092-5395
AB - Previous research has hinted at the potential influence of risk aversion on asset management decision-making. However, a thorough examination of its precise impact on wealth accumulation is noticeably lacking. In this study, we used balanced panel data from the 2017-2022 National Tax and Benefit Survey to thoroughly investigate the complex relationship between risk preferences and future asset accumulation, with a focus on real estate. Our findings shed light on this topic in several key ways: First, individuals with a higher risk tolerance show a significant increase in future asset growth. Second, the positive correlation between risk preferences and asset growth extends across multiple asset categories, including total assets, real estate holdings, and financial assets. Third, our findings show that fluctuations in real estate assets are the primary cause of changes in overall asset levels. Finally, regardless of the chosen time horizon (short, medium, or long term), individuals with a strong risk tolerance consistently experience increased asset accumulation. In conclusion, our findings suggest that those who accept a certain level of risk and actively participate in investments are more likely to accumulate wealth on average. However, given the pioneering nature of our study into the impact of risk preferences on future assets, further research is imperative to delve deeper into the causal relationship.
KW - Risk Preference;Risk Aversion;Real Estate Asset;Financial Asset;Wealth
DO - 10.35136/krer.34.1.2
ER -

KIM DAEHWAN and Dong-Hwa Lee. (2024). Can Risk Preference Lead to Greater Wealth Accumulation?. Korea Real Estate Review, 34(1), 23-39.

KIM DAEHWAN and Dong-Hwa Lee. 2024, "Can Risk Preference Lead to Greater Wealth Accumulation?", Korea Real Estate Review, vol.34, no.1 pp.23-39. Available from: doi:10.35136/krer.34.1.2

KIM DAEHWAN, Dong-Hwa Lee "Can Risk Preference Lead to Greater Wealth Accumulation?" Korea Real Estate Review 34.1 pp.23-39 (2024) : 23.

KIM DAEHWAN, Dong-Hwa Lee. Can Risk Preference Lead to Greater Wealth Accumulation?. 2024; 34(1), 23-39. Available from: doi:10.35136/krer.34.1.2

KIM DAEHWAN and Dong-Hwa Lee. "Can Risk Preference Lead to Greater Wealth Accumulation?" Korea Real Estate Review 34, no.1 (2024) : 23-39.doi: 10.35136/krer.34.1.2

KIM DAEHWAN; Dong-Hwa Lee. Can Risk Preference Lead to Greater Wealth Accumulation?. Korea Real Estate Review, 34(1), 23-39. doi: 10.35136/krer.34.1.2

KIM DAEHWAN; Dong-Hwa Lee. Can Risk Preference Lead to Greater Wealth Accumulation?. Korea Real Estate Review. 2024; 34(1) 23-39. doi: 10.35136/krer.34.1.2

KIM DAEHWAN, Dong-Hwa Lee. Can Risk Preference Lead to Greater Wealth Accumulation?. 2024; 34(1), 23-39. Available from: doi:10.35136/krer.34.1.2

KIM DAEHWAN and Dong-Hwa Lee. "Can Risk Preference Lead to Greater Wealth Accumulation?" Korea Real Estate Review 34, no.1 (2024) : 23-39.doi: 10.35136/krer.34.1.2