Professor Steffen Andersen, Department of Finance, receives a Carlsberg infrastructure grant of DKK456.490 to study the project ‘Mechanisms of Gender Disparity in Financial Choices’.
About the project: Gender disparity has been documented in households’ liability management (e.g., use of expensive credit facilities and delay or omission of advantageous refinancing) as well as asset allocation (e.g., non-participation in stock markets and lack of portfolio diversification). The project seeks to identify through which preferences and mechanisms financial mistakes are made.
Previous studies estimating deep preference parameters of importance for policy are usually assessed without explaining individuals’ underlying heterogeneity - and reported as conditional means. This implicitly assumes that one policy tool works the same for all individuals, irrespective of gender. This project aims to solve this shortcoming and enable the researchers to identify and describe a more realistic mechanism of choices - and understand how policy interventions can be designed and targeted at the type of individuals for which it is relevant.
“As our research projects are modeling behavior over several million individuals over long periods, we need substantial computational power to handle algorithms’ complexity. The grant provides the computational ability to execute these methods on large samples”, states Steffen Andersen.
Read more about the project on the Carlsbergfondet website here