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COVID-19 and economic preferences: Evidence from a panel of cab drivers

Year: 2024

Type: article

Abstract: This paper studies the impact of the COVID-19 pandemic on risk and time preferences. Using a longitudinal dataset from a survey of cab drivers in Lima (Peru), we document a significant increase in risk tolerance and patience. The changes are heterogeneous and monotonic by age: older cohorts become more risk-taking while younger ones become more patient. Our findings suggest that the pandemic could have affected individuals’ behavior and socioeconomic outcomes via another channel, namely, changes in economic preferences.

Source: Journal of Behavioral and Experimental Economics

DOI: 10.1016/j.socec.2024.102257

Authors: Fernando M. Aragon, Noelia Bernal, Mariano Bosch, Oswaldo Molina

Institutions: Simon Fraser University, Tilburg University, Network for Studies on Pensions, Aging and Retirement, University of the Pacific, Inter-American Development Bank

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Good health and well-being

Open Access status: hybrid

Estimated APC paid: $2,640