Abstract:
Men are strikingly more optimistic about the future performance of economic and financial indicators than women. In all countriesy, time periods, polls, and indicators we consider, this result holds generally even after controlling for other personal characteristics. Our evidence also suggests that men are more optimistic regarding other aspects of life, personal or general, with an exception of government. We illustrate one implication of this gender difference. Optimists hold up to 20% more equity. Very optimistic women hold almost 5% more equity than very optimistic men. Therefore not only risk-aversion, but also differences in optimism might explain gender differences in stock holdings.