On the stability of risk and time preferences amid the COVID-19 pandemic

We elicited incentivized measures of risk and time preferences from a sample of undergraduate students in Athens, Greece, in waves that preceded and overlapped with the COVID-19 pandemic. We exploited the timing of several events that occurred in the course of the pandemic (e.g., first occurrence of...

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Bibliographic Details
Published in:Experimental economics : a journal of the Economic Science Association 2022-06, Vol.25 (3), p.759-794
Main Authors: Drichoutis, Andreas C., Nayga, Rodolfo M.
Format: Article
Language:English
Subjects:
Behavioral/Experimental Economics
Coronaviruses
COVID-19
Curfews
Economic theory
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Game Theory
Global economy
Microeconomics
Operations Research/Decision Theory
Original Paper
Pandemics
Public health
Relaxation
Social and Behav. Sciences
Undergraduate students
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Summary:We elicited incentivized measures of risk and time preferences from a sample of undergraduate students in Athens, Greece, in waves that preceded and overlapped with the COVID-19 pandemic. We exploited the timing of several events that occurred in the course of the pandemic (e.g., first occurrence of cases and deaths, curfew, relaxation of curfew etc.) and estimated structural parameters for various theories of risk and time preferences comparing these with pre-pandemic estimates. We find no effect between the different waves or other key events of the pandemic, despite the fact that we have about 1000 responses across all waves. Overall, our subjects exhibit intertemporal stability of risk and time preferences despite the significant effect of the COVID-19 pandemic on public health and the global economy.
ISSN:1386-4157
1573-6938
DOI:10.1007/s10683-021-09727-6