Financial decision making in collective society-A field test on Israeli kibbutz members and city residents

Mosi Rosenboim, Tal Shavit, Amir Shoham

Research output: Contribution to journalArticlepeer-review

17 Scopus citations

Abstract

This comparison of Israeli kibbutz members to city residents examines how of individualistic/collective society affects financial decision making. Findings revealed that kibbutz members are more risk averse and discount the future more than city residents, undermining the assumption that collective society accords a safety net. We claim that the collective financial management of the kibbutz reduces individuals' financial knowledge and experience, causing them to be more risk averse in financial decisions, and thus overpowering the safety net offered by the collective society. In addition, we argue that despite privatization, individuals still operate according to collective ideas in handling their personal finances, but less than before the onset of the privatization process.

Original languageEnglish
Pages (from-to)30-36
Number of pages7
JournalJournal of Socio-Economics
Volume39
Issue number1
DOIs
StatePublished - 1 Jan 2010
Externally publishedYes

Keywords

  • Collective
  • Cross-cultural
  • Discounting
  • Individualistic
  • Israeli kibbutz
  • Risk aversion

ASJC Scopus subject areas

  • Economics and Econometrics

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