There is no difference between men and women in risk taking, altruism, fairness concern or trust

Anne Sibert discusses as one of the causes is the impact of the banking crises as a result of gender inequality i.e. too much testosterone leading to risky behavior.

I am so sorry to have to tell her that that hypothesis ha now been proven wrong. A study done by Stockholm School of Economics and a leading the research hospital Karolinska.

Sex hormones do not affect economic behavior

4/7/2009
A new study published in the April 6 advanced online issue of the Proceedings of the National Academy of Sciences (PNAS), shows that neither testosterone nor estrogen had any effect on financial risk taking.

Neither had it no effect on other “economic behavior” (altruism, fairness concerns or trust).

It is well established that women are more reluctant to take financial risks than men are; women for instance are less prone to invest their retirement savings in the stock market. It has been argued that these differences are due to sex hormones. Particularly, testosterone has been thought to increase risk taking and estrogen has been thought to decrease risk taking.

To test the hypothesis that sex hormones affect economic behavior a team of researchers at the Stockholm School of Economics and Karolinska Institutet conducted a double-blind randomised clinical trial. In the study women in the ages 50-65 years were randomly allocated to treatment with, testosterone, estrogen, or placebo. After 4 weeks of treatment, the women participated in a series of economic experiments to measure financial risk taking, altruism, fairness concerns, and trust. But no difference in behavior between the groups was discovered.

Thanks to Freakonomics

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