Work

Risk Attitudes, Sample Selection, and Attrition in a Longitudinal Field Experiment

Year: 2019

Type: article

Abstract: We evaluate the temporal stability of risk preferences using a remarkable data set that combines sociodemographic information from the Danish Civil Registry with information on risk attitudes from a longitudinal field experiment. Our econometric model accounts for endogenous sample selection and attrition processes that may confound inferences about temporal stability. Our experimental design builds in randomization on the incentives for participation that facilitates empirical identification of the model. In general, we find evidence consistent with temporal stability after correcting for the effects of selection and attrition. When neglected, these effects change our inferences in an economically and statistically significant manner.

Source: The Review of Economics and Statistics

DOI: 10.1162/rest_a_00845

Authors: Glenn W. Harrison, Morten I. Lau, Hong Il Yoo

Institutions: Georgia State University, Copenhagen Business School, Durham University

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: bronze

Funder: Samfund og Erhverv, Det Frie Forskningsråd

Award: G407904389