LOST IN STATE SPACE: ARE PREFERENCES STABLE?
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. Copyright © 2008 the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
Year of publication: |
2008
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Authors: | Andersen, Steffen ; Harrison, Glenn W. ; Lau, Morten I. ; Rutström, E. Elisabet |
Published in: |
International Economic Review. - Department of Economics. - Vol. 49.2008, 3, p. 1091-1112
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Publisher: |
Department of Economics |
Saved in:
freely available
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