Heterogeneous Risk and Time Preferences
| Autor: | Alina Ferecatu, Ayse Onculer |
|---|---|
| Přispěvatelé: | Department of Marketing Management |
| Jazyk: | angličtina |
| Rok vydání: | 2016 |
| Předmět: |
Consumption (economics)
Estimation Discounting Economics and Econometrics Addiction media_common.quotation_subject 05 social sciences Individual level Intertemporal choice Bayes' theorem Accounting 0502 economics and business Economics Econometrics 050207 economics Negative correlation Finance 050205 econometrics media_common |
| Zdroj: | Journal of Risk and Uncertainty. Springer Netherlands |
| ISSN: | 0895-5646 |
| Popis: | Assessing individuals’ time and risk preferences is crucial in domains such as health-related decisions (e.g., dieting, addictions), environmentally-friendly practices, and saving opportunities. We propose a new method to jointly elicit and estimate risk attitudes and intertemporal choices. We use a novel individual level estimation procedure based on a hierarchical Bayes methodology, which can integrate different functional forms for discounting and risk attitudes. This method provides individual level estimates, and allows us to explore the heterogeneity in the data. In addition, we report a negative correlation between risk and time preferences, implying that risk-seeking individuals are less patient and less willing to defer consumption. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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