Work

The stability of personal traits and preferences in times of the Corona pandemic: Evidence from Germany

Year: 2023

Type: article

Abstract: Based on panel data on around 5500 German households, this article analyzes whether the experience of financial losses due to the Corona pandemic has affected three kinds of personal traits and preferences: the willingness to take risks, patience, and the locus of control (LOC). Our empirical results indicate that patience and the LOC remain unchanged by the experience of pandemic‐related financial losses, whereas we find a negative effect of severe financial losses on risk‐taking, contrasting with the traditional assumption that such preferences are constant. In this respect, our heterogeneity analysis indicates that financial losses due to the Corona pandemic particularly affect the most vulnerable households, notably low‐income households and those with little income diversification.

Source: Social Science Quarterly

DOI: 10.1111/ssqu.13304

Authors: Manuel Frondel, Daniel Osberghaus, Stephan Sommer

Institutions: RWI – Leibniz Institute for Economic Research, Ruhr University Bochum, Centre for European Economic Research, Bochum University of Applied Sciences

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,730

Funders: Deutsche Forschungsgemeinschaft, Bundesministerium für Bildung und Forschung, European Association of Environmental and Resource Economists