Business Owners Financial Risk Report

Page 35

Table 6: Regressions - Share of the Financial Portfolio Allocated to Risky Assets Tobit Weighted

IV Tobit

Tobit Unweighted

Weighted

IV Tobit Unweighted

IV Linear Reg Unweighted

-0.009

-0.064

0.070

0.006

0.013

-0.012

0.010

0.006

Variables Business Owner 36-40

-0.030 *** -0.013

41-45 Age Category 46-50

-0.029 ***

0.004

-0.029 ***

0.001

-0.003

-0.067 ***

-0.022

-0.067 ***

-0.024

-0.017

51-55

-0.086 ***

-0.041 **

-0.086 ***

-0.043 **

-0.029 **

56-60

-0.119 ***

-0.049 **

-0.112 ***

-0.049 ***

-0.032 **

61 or More

-0.174 ***

-0.086 ***

-0.176 ***

-0.085 ***

-0.059 ***

Married

0.033 ***

0.037 ***

0.035

0.032

White

0.106 ***

0.102 ***

0.107 ***

0.099 ***

0.050 ***

-0.024 ***

-0.017 ***

-0.024 ***

-0.017 ***

-0.008 ***

Children Net Worth (100,000)

0.013

0.127 ***

0.063 ***

0.132 **

-0.107 ***

-0.089 ***

-0.108 ***

Pension

0.384 ***

0.277 ***

0.379 ***

0.287

0.151 ***

Inheritance

0.025 ***

0.038 ***

0.026 ***

0.036 ***

0.024 ***

Home Owner

0.094 ***

0.130 ***

0.093 ***

0.130 ***

0.048 ***

Bad Health

0.053

0.042

-0.088 ***

-0.039 ***

Liquidity

-0.004

-0.037 ***

-0.002

-0.041 *

-0.028 *

Less than HS

-0.160 ***

-0.189 ***

-0.161 ***

-0.186 ***

-0.045 ***

Some College

0.049 ***

0.046 ***

0.050 ***

0.045 **

0.019 * 0.091 ***

College Degree

0.049 ***

0.142 ***

0.107 ***

0.142 ***

Constant

-0.356 ***

-0.267 ***

-0.355 ***

-0.268 ***

0.079 ***

Observations

50689

50689

50689

50689

50689

0.2931

0.3126

Pseudo R2

Specification Tests CLR

0.21

LM

53.82 ***

AR

2.38

Wald F

26.95

S-Y 10% Hansen J

19.93 1.11

LM-J

not rejected

Notes: For unweighted specifications, standard errors and coefficients have been adjusted for multiple implicates. All specifications include year controls. The sample includes years 1998 to 2007 and individuals aged 32 or greater. *** denotes significance at the 1 percent level, ** denotes significance at the 5 percent level, and * denotes significance at the 10 percent level.

BUSINESS OWNERS, FINANCIAL RISK, AND WEALTH 35


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