In intertemporal models of household consumption or portfolio choice, household behaviour depends on, for example, the household's rate of time preference, the rate of risk aversion, and the household's information set. In this paper we use a survey of Dutch households which contains direct subjective information on risk aversion and time preference and on interest in financial matters. We first describe these data and analyze how they relate to household characteristics and household income. We then investigate whether these variables are related to households' financial decisions on home ownership, mortgages and ownership of risky assets. Our results are broadly in accordance with economic theory.

decision making, housing, intertemporal choice, risk taking
Methodology for Collecting, Estimating, and Organizing Microeconomic Data (jel C81), Consumer Economics: Empirical Analysis (jel D12), Intertemporal Choice and Growth: General (jel D90),
Journal of Economic Psychology
Erasmus School of Economics

Donkers, A.C.D, & van Soest, A.H.O. (1999). Subjective measures of household preferences and financial decisions. Journal of Economic Psychology, 613–642. doi:10.1016/S0167-4870(99)00027-6