Lost in state space: Are preferences stable?

    Authors

    S. Andersen; G. W. Harrison; M. I. Lau;E. E. Rutstroem

    Comments

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    Abbreviated Journal Title

    Int. Econ. Rev.

    Keywords

    SAMPLE SELECTION BIAS; RISK-AVERSION; FIELD EXPERIMENT; MODELS; DENMARK; CHOICE; HABIT; Economics

    Abstract

    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.

    Journal Title

    International Economic Review

    Volume

    49

    Issue/Number

    3

    Publication Date

    1-1-2008

    Document Type

    Article

    Language

    English

    First Page

    1091

    Last Page

    1112

    WOS Identifier

    WOS:000258260800012

    ISSN

    0020-6598

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