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Portfolio Allocation, Risk Aversion, and Digital Literacy Among the European Elderly

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  • Enescu Adrian-Gabriel

    (Department of Finance, Accounting, and Economic Theory, Transilvania University of Brasov, Brasov, Romania)

  • Raileanu Szeles Monica

    (Institute for Economic Forecasting, Transilvania University of Brasov, Brasov, Romania)

Abstract

This study contributes to the literature on portfolio choices of elder persons by examining the influence of digital literacy on the propensity to own risky assets, when considering individual- and country-level variables. Our empirical analysis is based on data from Survey of Health, Ageing and Retirement in Europe and a set of macroeconomic indicators retrieved from international databases. To capture the impact of individual- and country-level factors, we have utilized multilevel models with a two-level sampling design. The results obtained provide evidence for a positive relationship between individual- and country-level digital literacy and portfolio riskiness, as well as heterogeneity in the portfolio choices of older individuals across the European Union (EU) countries. In addition, age is found to influence differently the portfolio riskiness of elder persons across the EU countries. Bridging the digital divide may provide access to balanced-risk portfolios for elderly persons.

Suggested Citation

  • Enescu Adrian-Gabriel & Raileanu Szeles Monica, 2024. "Portfolio Allocation, Risk Aversion, and Digital Literacy Among the European Elderly," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-16.
    • Handle: RePEc:bpj:econoa:v:18:y:2024:i:1:p:16:n:1018
    DOI: 10.1515/econ-2022-0072
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    References listed on IDEAS

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    More about this item

    Keywords

    portfolio choices; stock market participation; digital divide; elderly people;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • F30 - International Economics - - International Finance - - - General

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