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Decomposing social risk preferences for health and wealth

Author

Listed:
  • Arthur E. Attema

    (Erasmus University Rotterdam)

  • Olivier L'Haridon

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, UGENT - Universiteit Gent = Ghent University)

  • Gijs van de Kuilen

    (Tilburg University [Netherlands])

Abstract

This study reports the results of the first artefactual field experiment designed to measure the prevalence of aversion toward different components of social risks in a large and demographically representative sample. We identify social risk preferences for health and wealth for losses and gains, and decompose these attitudes into four different dimensions: individual risk, collective risk, ex-post inequality, and ex-ante inequality. The results of a non-parametric analysis suggest that aversion to risk and inequality is the mean preference for outcomes in health and wealth in the domain of gains and losses. A parametric decomposition of aversion to risk and inequality shows that respondents are averse to ex-post and ex-ante inequality in health and wealth for gains and losses. Likewise, respondents are averse to collective risk, but neutral to individual risk, which highlights the importance of considering different components of social risk preferences when managing social health and wealth risks.

Suggested Citation

  • Arthur E. Attema & Olivier L'Haridon & Gijs van de Kuilen, 2023. "Decomposing social risk preferences for health and wealth," Post-Print hal-04116983, HAL.
    • Handle: RePEc:hal:journl:hal-04116983
    DOI: 10.1016/j.jhealeco.2023.102757
    Note: View the original document on HAL open archive server: https://hal.science/hal-04116983
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    Cited by:

    1. Arthur E. Attema & Olivier L’Haridon & Gijs Kuilen, 2023. "An experimental investigation of social risk preferences for health," Theory and Decision, Springer, vol. 95(3), pages 379-403, October.

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    More about this item

    Keywords

    Inequality; Risk aversion; Social risk;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General

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