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

Harrison, G.W.; Lau, M.I; Yoo, H.I

Abstract

We evaluate the temporal stability of risk preferences using a remarkable data set that combines socio-demographic 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.

Citation

Harrison, G., Lau, M., & Yoo, H. (2020). Risk Attitudes, Sample Selection and Attrition in a Longitudinal Field Experiment. The Review of Economics and Statistics, 102(3), 552-568. https://doi.org/10.1162/rest_a_00845

• Journal Article Type: Article
• Acceptance Date: Apr 10, 2019
• Online Publication Date: Jun 26, 2019
• Publication Date: 2020-07
• Deposit Date: May 1, 2019
• Publicly Available Date: May 1, 2019
• Journal: Review of Economics and Statistics
• Print ISSN: 0034-6535
• Electronic ISSN: 1530-9142
• Publisher: Massachusetts Institute of Technology Press
• Peer Reviewed: Peer Reviewed
• Volume: 102
• Issue: 3
• Pages: 552-568
• DOI: https://doi.org/10.1162/rest_a_00845
• Public URL: https://durham-repository.worktribe.com/output/1302789