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