Lost in state space: Are preferences stable?
Abbreviated Journal Title
Int. Econ. Rev.
SAMPLE SELECTION BIAS; RISK-AVERSION; FIELD EXPERIMENT; MODELS; DENMARK; CHOICE; HABIT; Economics
We use field experiments to examine the temporal stability of risk preferences. Over a 17-month period, we elicited risk preferences from subjects chosen to be representative of the adult Danish population. During this period we revisited many of these subjects and repeated a risk aversion elicitation task. We find some variation in risk attitudes over time, but we do not detect a general tendency for risk attitudes to increase or decrease over a 17-month span. The results also suggest that risk preferences are state contingent with respect to personal finances.
International Economic Review
"Lost in state space: Are preferences stable?" (2008). Faculty Bibliography 2000s. 70.