Work

Emotions and Risk Attitudes

Year: 2022

Type: article

Abstract: 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 risk attitudes. Using a large-panel dataset, I identify happiness, anger, and fear as significant correlates of within-person changes in risk attitudes. Robustness checks indicate a limited role for alternative explanations. An event study around the death of a parent or child further confirms a large relationship between emotions and risk attitudes. (JEL D12, D81, D91, I31)

Source: American Economic Journal Applied Economics

DOI: 10.1257/app.20200164

Author: Armando N. Meier

Institutions: University of Basel, University of Lausanne

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W3183194652

FWCI: 7.077

Cites: 98

Cited by: 47

Related to: 10