Table 7.
Individual Attributes
| Latent Variable: Log of Risk Tolerance
| ||
|---|---|---|
| Model Allows for Heteroscedastic Errors
|
||
| Parameter | Yes | No |
| Direct and Type Effects: β + λ | ||
| Male |
0.14 (0.04) |
0.22 (0.03) |
| Black |
−0.28 (0.06) |
−0.12 (0.05) |
| Hispanic | −0.03 (0.08) |
0.05 (0.06) |
| High School Drop Out | 0.02 (0.06) |
0.09 (0.04) |
| Some College |
0.17 (0.05) |
0.19 (0.04) |
| College Graduate |
0.22 (0.06) |
0.25 (0.06) |
| Post Graduate |
0.32 (0.06) |
0.40 (0.06) |
| Direct Effect: β | ||
| Currently Married | 0.11 (0.09) |
0.10 (0.08) |
| Fraction Exact Probability |
0.82 (0.10) |
0.52 (0.09) |
| Type Effect: λ | ||
| Proportion of Years Married |
−0.27 (0.10) |
−0.23 (0.09) |
| Average FEP Across Waves |
0.27 (0.14) |
−0.05 (0.12) |
| Std. Dev. of Individual Effect : σu |
0.72 (0.03) |
0.77 (0.03) |
| Std. Dev. of Response Error: σe |
1.55 (0.01) |
1.50 (0.02) |
| Log-likelihood | −23573.5 | −23801.3 |
| Parameters | 55 | 29 |
NOTE: Asymptotic standard errors are in parentheses. Estimates in bold are statistically significant at the 5% level. The sample includes 12,003 individuals. The first column is the baseline specification of the model, see Appendix Table 1 for the full set of covariates and estimates. The model in the second column imposes homoscedasticity on the response errors. Fraction exact probability (FEP) is the fraction of the subjection probability questions in the survey to which an individual gives a non-focal response (not 0, 50, or 100). Covariates under the type effects are for an individual over the panel period.