arbiter
JournalsPricingAccount

The Impact of the COVID-19 Crisis on Individuals' Risk and Time Preferences

Luc Meunier & Sima Ohadi

Economics Bulletin2021article
ABDC C
Weight
0.42

What the paper says

Crises, such as the COVID-19 crisis, are expected to affect individuals' risk and time preferences towards being more cautious. We test this hypothesis experimentally during the COVID-19 pandemic using a longitudinal design. In line with the general expectations of more cautious behaviors, we observe a significant increase in loss aversion and a decrease in present bias. The increase in loss aversion is driven by respondents who have negligible tangible assets, no children, and are from mainland Europe. The decrease in present bias leads to significantly higher discount factors (i.e., more patience) for the next three to four quarters. Older respondents drive this decrease in present bias. Further analysis reveals that this effect of age is explained by older individuals' perception of a higher risk of severe health consequences if one catches COVID-19.

5 citations

Cite this paper

@article{luc2021,
  title        = {{The Impact of the COVID-19 Crisis on Individuals' Risk and Time Preferences}},
  author       = {Luc Meunier & Sima Ohadi},
  journal      = {Economics Bulletin},
  year         = {2021},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

The Impact of the COVID-19 Crisis on Individuals' Risk and Time Preferences

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.42

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.18 × 0.4 = 0.07
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.