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Time Will Tell: Recovering Preferences When Choices Are Noisy

Alós-Ferrer, Carlos; Fehr, Ernst; Netzer, Nick - 2018

The ability to uncover preferences from choices is fundamental for both positive economics and welfare analysis. Overwhelming evidence shows that choice is stochastic, which has given rise to random utility models as the dominant paradigm in applied microeconomics. However, as is well known, it...

Persistent link: https://www.econbiz.de/10011984478

Labor and Financial Market Interactions: The Case of Labor Income Risk and Car Insurance in the UK 1969-95

Koeniger, Winfried - 2001

and car insurance using data from the UK. The main empirical results are: ? higher labor income risk induces a higher … demand for car insurance. ? the effects of increases in labor income risk after 1979 seem to be more than offset by a more …Microeconomic theory predicts that under certain regularity conditions higher idiosyncratic risk increases the …

Persistent link: https://www.econbiz.de/10010262448

Riches to Rags Every Month? : The Fall in Consumption Expenditures Between Paydays

Huffman, David; Barenstein, Matias - 2004

-hyperbolic discounting. However, the hyperbolic model predicts that credit constraints drive the decline, and we find only mixed evidence in … declining cash spending but flat credit-card spending over the pay period. We propose an alternative explanation for the results …

Persistent link: https://www.econbiz.de/10010262166

Child Expenditure: The Role of Working Mothers, Lone Parents, Sibling Composition and Household Provision

Farrell, Lisa; Shields, Michael A. - 2001

This paper uses detailed diary information from the British Family Expenditure Survey (FES) to investigate the expenditure patterns of school-age children. We estimate a Quadratic Almost Ideal Demand System, and find that, whilst most commodities are normal goods, sweets and toys are luxury...

Persistent link: https://www.econbiz.de/10010262592

An Afriat theorem for the collective model of household consumption

Cherchye, Laurens; De Rock, Bram; Vermeulen, Frederic - 2008

We provide a nonparametric 'revealed preference' characterization of rational household behavior in terms of the collective consumption model, while accounting for general (possibly non-convex) individual preferences. We establish a Collective Axiom of Revealed Preference (CARP), which provides...

Persistent link: https://www.econbiz.de/10010269151

Non-unitary models of household behavior: a survey of the literature

Chiappori, Pierre-André; Donni, Olivier - 2009

This article considers non-unitary models of household behavior. These models suppose explicitly that households consist of a number of different members with preferences that are different from each other. They can be split up into two principal categories: cooperative (or collective) models,...

Persistent link: https://www.econbiz.de/10010269486

Kinky choices, dictators and split might: a non-cooperative model for household consumption and labor supply

Boone, Jan; van der Wiel, Karen; Vermeulen, Frederic - 2009

It is unlikely that husbands and wives always agree on exactly what public goods to buy. Nor do they necessarily agree on how many hours to work with obvious consequences for the household budget. We therefore model consumption and labor supply behavior of a couple in a non-cooperative setting...

Persistent link: https://www.econbiz.de/10010277211

The Impact of Risk Perception and Risk Attitudes on Corrupt Behavior: Evidence from a Petty Corruption Experiment

Djawadi, Behnud Mir; Fahr, René - 2013

accepting a bribe that leads to a higher present period income while facing the risk of being audited and being left with a … considerable lower income in all subsequent periods. Because risk attitudes might differ when putting earned versus endowed income … at risk, we compare treatments where participants either receive an endowment beforehand, or earn their income by …

Persistent link: https://www.econbiz.de/10010319579

The radical innovation investment decision refined

Bilkic, Natasa; Gries, Thomas; Naudé, Wim A. - 2013

We refine modelling of the radical innovation decision in this paper by extending real option theory to include non-marginal stochastic jump processes. From the model analytics we determine that the average magnitude and frequency of non-marginal stochastic jump processes are the most important...

Persistent link: https://www.econbiz.de/10010293106

A Reconsideration of Gender Differences in Risk Attitudes

Filippin, Antonio; Crosetto, Paolo - 2014

This paper reconsiders the wide agreement that females are more risk averse than males providing a leap forward in its …

Persistent link: https://www.econbiz.de/10010377280