Review of Behavioral Economics > Vol 10 > Issue 4

Spiritual Beliefs and Risk Aversion Behavior: Evidence from Chinese Numerology

Haifeng Zhang, School of Public Finance and Taxation, Nanjing University of Finance and Economics, China, seawindzhang@163.com , Yumeng Pang, School of Public Finance and Taxation, Nanjing University of Finance and Economics, China, yumeng@nufe.edu.cn , Yuyang Zhang, School of Public Administration, Zhejiang University of Technology, China, yyzhang0621@163.com , Peter C. Coyte, Institute of Health Policy, Management and Evaluation, University of Toronto, Canada, peterccoyte@gmail.com
 
Suggested Citation
Haifeng Zhang, Yumeng Pang, Yuyang Zhang and Peter C. Coyte (2023), "Spiritual Beliefs and Risk Aversion Behavior: Evidence from Chinese Numerology", Review of Behavioral Economics: Vol. 10: No. 4, pp 315-334. http://dx.doi.org/10.1561/105.00000176

Publication Date: 21 Nov 2023
© 2023 H. Zhang, Y. Pang, Y. Zhang and P. C. Coyte
 
Subjects
Behavioral economics
 
Keywords
JEL Codes: D12, Z12
Spiritual beliefzodiac yearrisk aversion behavior
 

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In this article:
1. Introduction 
2. Background Introduction and Theoretical Hypothesis 
3. Empirical Framework 
4. Empirical Results 
5. Additional Empirical Analysis 
6. Conclusion 
References 

Abstract

Cultural beliefs play an important crucial role in shaping individuals’ decision-making and behavior. This study uses data from the 2011 and 2013 waves of the China Household Financial Survey to investigate the impact of a specific Chinese spiritual belief, known as the “zodiac year”, on individual risk aversion behavior. The findings reveal a significant correlation between the zodiac year and individuals' risk attitudes, indicating that people tend to adopt more risk-averse behaviors during their zodiac year. Additionally, we explore the influence of Eastern religions and education on the relationship between the zodiac year and individuals’ risk aversion behavior. The results indicate that Eastern religions amplify the impact of the zodiac year, whereas educational attainment has the potential to mitigate the influence of this superstitious belief. This study contributes to the growing body of literature examining the influence of spiritual beliefs on individual economic behavior, providing empirical support for the hypothesis that spiritual beliefs can shape individuals’ risk aversion behavior.

DOI:10.1561/105.00000176