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

Author

Listed:
  • Glenn W. Harrison

    (Georgia State University)

  • Morten I. Lau

    (Copenhagen Business School and Durham University Business School, Durham University)

  • Hong Il Yoo

    (Durham University Business School, Durham University)

Abstract

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.

Suggested Citation

  • Glenn W. Harrison & Morten I. Lau & Hong Il Yoo, 2020. "Risk Attitudes, Sample Selection, and Attrition in a Longitudinal Field Experiment," The Review of Economics and Statistics, MIT Press, vol. 102(3), pages 552-568, July.
    • Handle: RePEc:tpr:restat:v:102:y:2020:i:3:p:552-568
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    8. Nicholas Ingwersen & Elizabeth Frankenberg & Duncan Thomas, 2023. "Evolution of Risk Aversion over Five Years after a Major Natural Disaster," NBER Working Papers 31102, National Bureau of Economic Research, Inc.
    9. Thiemann, Petra & Schulz, Jonathan & Sunde, Uwe & Thöni, Christian, 2022. "Selection into experiments: New evidence on the role of preferences, cognition, and recruitment protocols," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 98(C).
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    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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