Risk attitudes and affective states among young adults

dc.contributor.advisorKeswell, Malcolm
dc.contributor.authorRaziya, Anzisca
dc.date.accessioned2025-09-19T12:13:53Z
dc.date.available2025-09-19T12:13:53Z
dc.date.issued2025
dc.date.updated2025-09-19T11:55:04Z
dc.description.abstractThis study examines how negative emotions influence risk attitudes and chance attitudes profiles among young adults using data from a novel behaviour modification programme targeted at young adults in South Africa. Risk attitudes are estimated structurally by assuming a stan-dard power utility function for the risky prospects they face in the risk elicitation experiment. The power parameter is recovered, and checks are performed for evidence of risk aversion and probability distortions. We find that while both the control and treatment groups exhibit risk aversion, the programme does not significantly alter risk aversion overall. However, significant treatment effects emerge with respect to probability distortion, suggesting that the programme fosters behaviour more closely aligned with expected utility maximisation. The programme appears to decrease the likelihood that individuals never experience anger or hostility. However, the effects on anger and hostility do not account for the observed treatment effects on probability distortions. Furthermore, individuals who never experience nervousness tend towards risk neutrality, while those who experience it are typically risk averse. Interestingly, both nervousness and fear correlate negatively with probability distortions, indicating a more pessimistic approach to risk among those who do not experience these emotions. This pattern holds across both the treatment and control groups, suggesting that these emotions remain relatively stable in the programme context. These findings emphasise the importance of considering affective states in designing interventions to address risky behaviours among young adults, contributing to improved public health outcomes.
dc.identifier.apacitationRaziya, A. (2025). <i>Risk attitudes and affective states among young adults</i>. (). University of Cape Town ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/41874en_ZA
dc.identifier.chicagocitationRaziya, Anzisca. <i>"Risk attitudes and affective states among young adults."</i> ., University of Cape Town ,Faculty of Commerce ,School of Economics, 2025. http://hdl.handle.net/11427/41874en_ZA
dc.identifier.citationRaziya, A. 2025. Risk attitudes and affective states among young adults. . University of Cape Town ,Faculty of Commerce ,School of Economics. http://hdl.handle.net/11427/41874en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Raziya, Anzisca AB - This study examines how negative emotions influence risk attitudes and chance attitudes profiles among young adults using data from a novel behaviour modification programme targeted at young adults in South Africa. Risk attitudes are estimated structurally by assuming a stan-dard power utility function for the risky prospects they face in the risk elicitation experiment. The power parameter is recovered, and checks are performed for evidence of risk aversion and probability distortions. We find that while both the control and treatment groups exhibit risk aversion, the programme does not significantly alter risk aversion overall. However, significant treatment effects emerge with respect to probability distortion, suggesting that the programme fosters behaviour more closely aligned with expected utility maximisation. The programme appears to decrease the likelihood that individuals never experience anger or hostility. However, the effects on anger and hostility do not account for the observed treatment effects on probability distortions. Furthermore, individuals who never experience nervousness tend towards risk neutrality, while those who experience it are typically risk averse. Interestingly, both nervousness and fear correlate negatively with probability distortions, indicating a more pessimistic approach to risk among those who do not experience these emotions. This pattern holds across both the treatment and control groups, suggesting that these emotions remain relatively stable in the programme context. These findings emphasise the importance of considering affective states in designing interventions to address risky behaviours among young adults, contributing to improved public health outcomes. DA - 2025 DB - OpenUCT DP - University of Cape Town KW - Risk attitudes KW - Young adults LK - https://open.uct.ac.za PB - University of Cape Town PY - 2025 T1 - Risk attitudes and affective states among young adults TI - Risk attitudes and affective states among young adults UR - http://hdl.handle.net/11427/41874 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/41874
dc.identifier.vancouvercitationRaziya A. Risk attitudes and affective states among young adults. []. University of Cape Town ,Faculty of Commerce ,School of Economics, 2025 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/41874en_ZA
dc.language.isoen
dc.language.rfc3066eng
dc.publisher.departmentSchool of Economics
dc.publisher.facultyFaculty of Commerce
dc.publisher.institutionUniversity of Cape Town
dc.subjectRisk attitudes
dc.subjectYoung adults
dc.titleRisk attitudes and affective states among young adults
dc.typeThesis / Dissertation
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMCom
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