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The Significance of Financial Competence and Risk Tolerance in Home-Related Expenditure by Jurisdiction and Regime

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  • Clark Gordon L

    (Smith School of Enterprise and the EnvironmentOxford UniversityUnited Kingdom and St Edmund HallQueens LaneOxford OX1 4AROxford OX1 3QYUnited Kingdom)

Abstract

Understanding observed geographical patterns in financial behaviour requires an analytical approach that joins global forces with national institutions and behavioural practices to account for similarities and differences in key explanatory variables. Patterns of home-related expenditures are regressed against individuals’ attributes including age, gender, income, and employment status along with measures of individual’s financial acumen. It is shown that there are differences in the statistical significance of individual attributes and financial factors (competence and risk tolerance) by jurisdiction, and between groups of jurisdictions distinguishing between Anglo-American and European countries. Implications are drawn for research at intersection of global finance, jurisdictional context and individual decision-making.

Suggested Citation

  • Clark Gordon L, 2021. "The Significance of Financial Competence and Risk Tolerance in Home-Related Expenditure by Jurisdiction and Regime," ZFW – Advances in Economic Geography, De Gruyter, vol. 65(1), pages 12-27, March.
    • Handle: RePEc:bpj:zfwige:v:65:y:2021:i:1:p:12-27:n:1
    DOI: 10.1515/zfw-2020-0035
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    More about this item

    Keywords

    Competence; risk tolerance; home expenditures; jurisdiction;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • G2 - Financial Economics - - Financial Institutions and Services
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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