Emotions, risk attitudes, and patience

Saved in:

Authors and Corporations:

Meier, Armando N. (Author)

Type of Resource:

E-Book

Language:

English

published:

Berlin, Germany German Socio-Economic Panel (SOEP), DIW Berlin [2019]

Series:

Subjects:

Emotions

risk attitudes

patience

risk preferences

time preferences

Graue Literatur

Source:

Verbunddaten SWB
Lizenzfreie Online-Ressourcen

Description
Summary:	Previous work has shown that preferences are not always stable across time, but surprisingly little is known about the reasons for this instability. I examine whether variation in people's emotions over time predicts changes in preferences. Using a large panel data set, I find that within-person changes in happiness, anger, and fear have substantial effects on risk attitudes and patience. Robustness checks indicate a limited role of alternative explanations. I further address potential endogeneity concerns by exploiting information about the death of a parent or child. This identification strategy confirms a large causal impact of emotions on preferences.
Physical Description:	1 Online-Ressource (circa 83 Seiten); Illustrationen