Risk Attitudes, Sample Selection, and Attrition in a Longitudinal Field Experiment

We evaluate the temporal stability of risk preferences using a remarkable data set that combines sociodemographic information from the Danish Civil Registry with information on risk attitudes from a longitudinal field experiment. Our econometric model accounts for endogenous sample selection and att...

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Bibliographic Details
Published in:The review of economics and statistics 2020-07, Vol.102 (3), p.552-568
Main Authors: Harrison, Glenn W., Lau, Morten I., Yoo, Hong Il
Format: Article
Language:English
Subjects:
Attitudes
Attrition
Econometrics
Endogenous
Risk preferences
Sociodemographics
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Summary:We evaluate the temporal stability of risk preferences using a remarkable data set that combines sociodemographic information from the Danish Civil Registry with information on risk attitudes from a longitudinal field experiment. Our econometric model accounts for endogenous sample selection and attrition processes that may confound inferences about temporal stability. Our experimental design builds in randomization on the incentives for participation that facilitates empirical identification of the model. In general, we find evidence consistent with temporal stability after correcting for the effects of selection and attrition. When neglected, these effects change our inferences in an economically and statistically significant manner.
ISSN:0034-6535
1530-9142
DOI:10.1162/rest_a_00845