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Risk and Time Preferences: Linking Experimental and Household Survey Data from Vietnam

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  • Tomomi Tanaka
  • Colin F. Camerer
  • Quang Nguyen

Abstract

We conducted experiments in Vietnamese villages to determine the predictors of risk and time preferences. In villages with higher mean income, people are less loss-averse and more patient. Household income is correlated with patience but not with risk. We expand measurements of risk and time preferences beyond expected utility and exponential discounting, replacing those models with prospect theory and a three-parameter hyperbolic discounting model. Comparable risk parameter estimates have been found for Chinese farmers, using our method. (C83, D12, O12, P38)

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 100 (2010)
Issue (Month): 1 (March)
Pages: 557-71

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Handle: RePEc:aea:aecrev:v:100:y:2010:i:1:p:557-71

Note: DOI: 10.1257/aer.100.1.557
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  1. Jerry A. Hausman, 1979. "Individual Discount Rates and the Purchase and Utilization of Energy-Using Durables," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 33-54, Spring.
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  7. Eckel, Catherine C. & Grossman, Philip J., 2008. "Differences in the Economic Decisions of Men and Women: Experimental Evidence," Handbook of Experimental Economics Results, Elsevier.
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  1. Tanaka, Camerer and Nguyen AER - Eliciting Risk and Time Preferences
    by Liam Delaney in Geary Behaviour Centre on 2010-08-08 10:37:00
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