How Negative Interest Rates Affect the Risk-Taking of Individual Investors: Experimental Evidence

2018 ◽  
Author(s):  
Maren Baars ◽  
Henning Cordes ◽  
Hannes Mohrschladt
Keyword(s):  
Interest Rates ◽  
Experimental Evidence ◽  
Risk Taking ◽  
Individual Investors ◽  
Negative Interest Rates

How negative interest rates affect the risk-taking of individual investors: Experimental evidence

2020 ◽  
Vol 32 ◽  
pp. 101179 ◽  
Author(s):  
Maren Baars ◽  
Henning Cordes ◽  
Hannes Mohrschladt
Keyword(s):  
Interest Rates ◽  
Experimental Evidence ◽  
Risk Taking ◽  
Individual Investors ◽  
Negative Interest Rates

scholarly journals The Effects on Investment Behavior of Zero Interest Rate Policy—Evidence From a Roulette Experiment

2019 ◽  
Vol 6 (4) ◽  
pp. 18 ◽  
Author(s):  
Christian A. Conrad
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Risk Taking ◽  
Investment Decision ◽  
Investment Behavior ◽  
Real Economy ◽  
Interest Rate Policy ◽  
Capital Costs ◽  
Investment Decision Making ◽  
Negative Interest Rates

This paper examines the effects of interest rate cuts on investment behavior. The methodology is to simulate investment decision making under different capital costs. The experiment showed that decreasing interest rates encourage risk-taking. With the decreased interest rate as borrowing costs the risk taking increased weakly but continuously. The risk taking increased strongly when the interest rate reached zero. Thus the experiment showed excessive risk-taking when there were no capital costs. This finding supports the hypothesis that extreme expansive monetary policy with low, zero or negative interest rates encourage financial bubbles and overinvestments or wrong investments in the real economy.

scholarly journals Do negative interest rates affect bank risk-taking?

2021 ◽  
Author(s):  
Alessio Bongiovanni ◽  
Alessio Reghezza ◽  
Riccardo Santamaria ◽  
Jonathan Williams
Keyword(s):  
Interest Rates ◽  
Risk Taking ◽  
Bank Risk ◽  
Negative Interest Rates

scholarly journals Negative interest rates policy and banks’ risk-taking: Empirical evidence

2020 ◽  
Vol 186 ◽  
pp. 108760 ◽  
Author(s):  
Whelsy Boungou
Keyword(s):  
Interest Rates ◽  
Empirical Evidence ◽  
Risk Taking ◽  
Negative Interest Rates

Five Mysteries Surrounding Low and Negative Interest Rates

CFA Digest ◽  
2017 ◽  
Vol 47 (8) ◽  
Author(s):  
Jakub M. Szudejko
Keyword(s):  
Interest Rates ◽  
Negative Interest Rates

Negative Interest Rates

2016 ◽  
Author(s):  
Anastasios Anastasopoulos
Keyword(s):  
Interest Rates ◽  
Negative Interest Rates

Adapting Lending Policies When Negative Interest Rates Hit Bankss Profits

2018 ◽  
Author(s):  
Oscar Arce ◽  
Miguel Garcia-Posada ◽  
Sergio Mayordomo ◽  
Steven R. G. Ongena
Keyword(s):  
Interest Rates ◽  
Negative Interest Rates
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