Health on the tendency to invest 🔗
- RQ: Health -> Likelihood of investing (in what?)
Several channels through which health impacts tendency to invest have been presented, the most prevalent being income, life horizon and background risk.
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Income is conceptually very different from health
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It is a determinant for health, but there is likely also a ceteris paribus effect as suggested by theory
- But I like the focus on background risk and life expectancy
- Question is only: can you find enough data on these aspects?
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From the introduction, it is not clear yet what exactly the causal chain is you’re proposing: health -> tendency to invest is mitigated by risk aversion
- So I dont necessarily believe figures 1 and 2
- But there is also a direct effect of risk-aversion on investment behavior according to theory
- The indirect effect might especially be there for life horizon (are there any theories that show this?)
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In the introduction, it is okay to start with an example, but I think you should start more abstractly, rather than start with Dutch right away
- Details about the sample and methodology not necessarily in introduction (last paragraph)
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The second hypothesis: Risk aversion is the sole mediator between perceived health status and tendency to invest is probably very difficult to test, better to write it in a positive form.
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Methodology:
- You need more dependent variables (investments in what?)
- You need an interaction effect in the regression model
- You need a proxy for background risk and life expectancy
- Are there any other controls other than income and age? (Life expectancy is not a control)