Higher order risk attitudes in the time of COVID-19: an experimental study

Autor:	Abdul H. Kidwai, Maximiliano Sosa Andrés, Irene Mussio
Rok vydání:	2022
Předmět:	Economics and Econometrics Actuarial science Coronavirus disease 2019 (COVID-19) Apportionment Risk aversion Order (exchange) media_common.quotation_subject Pandemic Prudence Disease Natural disaster Psychology media_common
Zdroj:	Oxford Economic Papers. 75:163-182
ISSN:	1464-3812 0030-7653
DOI:	10.1093/oep/gpac007
Popis:	The coronavirus disease (COVID-19) represents a large increase in background risk for individuals. Like the COVID-19 pandemic, extreme events (e.g. financial downturns, natural disasters, and war) have been shown to change attitudes towards risk. Using a risk apportionment approach, we examine whether risk aversion as well as higher order risk attitudes (HORAs) (prudence and temperance) have changed during COVID-19. This methodology allows us to measure model-free HORAs. We include prudence and temperance as higher order measures, as these two have been largely understudied under extreme events but are determinants of decisions related to the health and financial domains. Once we account for socio-demographic characteristics, we find an overall increase in risk aversion during COVID-19. We also find similar results using a hypothetical survey question which measures willingness to take risks. We do not find changes in prudence and temperance using the risk apportionment methodology.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::e363eeb45491da68331b6567391b2019 https://doi.org/10.1093/oep/gpac007 Zobrazit plný text záznamu