The effect of risk attitude, trust and social norms on the investment choice between shares, bank deposits, and residential real estate in New Zealand and Germany.
Type of content
Why do many people in many countries invest so much in real estate? We consider the investment choices of New Zealanders and Germans and investigate how these choices varied with Investment Risk Attitude, economic trust and the behaviour of close others. Within countries, share investment increased with Investment Risk Attitude, economic trust and share investment by close others. Real estate investment was related to similar investment by close others and showed some tendency to increase with decreasing trust. However, although there were national differences in investment choice, these differences were not explained by differences in risk attitude, trust or the behaviour of close others.