How Does the Change of Information Source Affect Residents' Risk Attitudes?

Using data from the China Family Panel Studies (CFPS), this paper investigates the effects of Internet use on residents' risk attitudes. Both Generalized Ordered Logit Model and Logit model are used to identify the effects of Internet use. The results reveal an association between Internet use and increases in both subjective and objective risk preferences that remains even after we adjust for possible endogeneity. The heterogeneity analysis also reveals that these impacts are different among groups with different reasons for Internet use and different personal characteristics. Our study expands the research on the effects of Internet on people's concepts from the micro perspective and suggests that while promoting the application of information technology we should also pay attention to the individual characteristics of residents so that we can better share the digital dividend brought by the popularization of information technology in the whole society.

Automated summary

This paper examines the effects of Internet use on residents' risk attitudes using data from the China Family Panel Studies (CFPS). The study finds that Internet use is associated with increases in both subjective and objective risk preferences, even after accounting for possible endogeneity. The analysis also reveals that these effects vary among groups with different reasons for Internet use and different personal characteristics. This study contributes to the understanding of how Internet use influences people's concepts and suggests the importance of considering individual characteristics when promoting information technology to share its benefits.