Low interest rates and risk-taking: Evidence from individual investment decisions
How do low interest rates affect investor behavior?We demonstrate that individuals "reach for yield," that is, have a greater appetite for risk-taking when interest rates are low. Using randomized investment experiments holding fixed risk premiums and risks, we show low interest rates lead...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Oxford University Press
2019
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| Online Access: | View Fulltext in Publisher |