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Experimentos de campo en economía: preferencias en relación al riesgo y demanda por contratos intertemporales en el Perú
[Field experiments in Economics: Risk preferences and demand for intertemporal contracts in Peru]

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  • Galarza, Francisco

Abstract

This article looks at the determinants of the choice of productive projects involving intertemporal contracts in rural Peru. In a setting where the formal education is limited, the successful launching of new financial instruments may be affected by the lack of proper understanding of their main features, as well as judgment biases. We find that education, a source of judgment bias, and (weakly) risk aversion, affect such a project choice. In contrast, wealth does not appear to play a role in explaining project choice.

Suggested Citation

  • Galarza, Francisco, 2010. "Experimentos de campo en economía: preferencias en relación al riesgo y demanda por contratos intertemporales en el Perú
    [Field experiments in Economics: Risk preferences and demand for intertempor
    ," MPRA Paper 30205, University Library of Munich, Germany, revised 2010.
  • Handle: RePEc:pra:mprapa:30205
    as

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    File URL: https://mpra.ub.uni-muenchen.de/30205/1/MPRA_paper_30205.pdf
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    References listed on IDEAS

    as
    1. Theo Offerman & Joep Sonnemans, 2004. "What's Causing Overreaction? An Experimental Investigation of Recency and the Hot-hand Effect," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(3), pages 533-554, October.
    2. Shawn Cole & Xavier Gine & Jeremy Tobacman & Petia Topalova & Robert Townsend & James Vickery, 2013. "Barriers to Household Risk Management: Evidence from India," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 104-135, January.
    3. Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 178-199.
    4. Davis, Douglas D. & Holt, Charles a., 1993. "Experimental economics: Methods, problems and promise," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 8(2), pages 179-212.
    5. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, pages 1009-1055.
    6. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    7. Glenn W. Harrison & Morten I. Lau & E. Elisabet Rutström, 2007. "Estimating Risk Attitudes in Denmark: A Field Experiment," Scandinavian Journal of Economics, Wiley Blackwell, pages 341-368.
    8. Galarza, Francisco B. & Carter, Michael R., 2010. "Risk Preferences and Demand for Insurance in Peru: A Field Experiment," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61871, Agricultural and Applied Economics Association.
    9. Jonathan Morduch, 1995. "Income Smoothing and Consumption Smoothing," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 103-114, Summer.
    10. Tversky, Amos & Thaler, Richard H, 1990. "Anomalies: Preference Reversals," Journal of Economic Perspectives, American Economic Association, vol. 4(2), pages 201-211, Spring.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Yield insurance; covariate risk; idiosyncratic risk; credit; risk aversion; experimental economics; Peru;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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