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Personality and Economic Choices

Author

Listed:
  • Christopher Boyce

    () (University of Stirling, Stirling Management School)

  • Mikołaj Czajkowski

    () (Faculty of Economic Sciences, University of Warsaw)

  • Nick Hanley

    () (University of St Andrews, School of Geography and Geosciences)

Abstract

In this paper, we undertake the first examination of the effects of personality on individual economic choices over public environmental goods, using a stated preference approach. Based on three data sets from three separate choice modelling studies, we examine the effects of personality on preferences for the status quo, for changes in environmental quality, and over the costs of investing in environmental improvement. Using a hybrid choice framework, we show that incorporating personality research into economic models can provide valuable behavioural insights, enriching explanations of why the demand for environmental goods varies across people.

Suggested Citation

  • Christopher Boyce & Mikołaj Czajkowski & Nick Hanley, 2017. "Personality and Economic Choices," Working Papers 2017-11, Faculty of Economic Sciences, University of Warsaw.
  • Handle: RePEc:war:wpaper:2017-11
    as

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    File URL: https://www.wne.uw.edu.pl/index.php/download_file/3515/
    File Function: First version, 2016
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    References listed on IDEAS

    as
    1. Boyce, Christopher J. & Wood, Alex M., 2011. "Personality and the marginal utility of income: Personality interacts with increases in household income to determine life satisfaction," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1), pages 183-191.
    2. John Ameriks & Andrew Caplin & John Leahy & Tom Tyler, 2007. "Measuring Self-Control Problems," American Economic Review, American Economic Association, vol. 97(3), pages 966-972, June.
    3. Czajkowski, Mikolaj & Hanley, Nicholas & Nyborg, Karine, 2014. "Social norms, morals and self-interest as determinants of pro-environment behaviour," Stirling Economics Discussion Papers 2014-06, University of Stirling, Division of Economics.
    4. Christopher J. Boyce & Alex M. Wood, 2011. "Personality and the marginal utility of income: Personality interacts with increases in household income to determine life satisfaction," Post-Print halshs-00754542, HAL.
    5. John Ameriks & Andrew Caplin & John Leahy, 2003. "Wealth Accumulation and the Propensity to Plan," The Quarterly Journal of Economics, Oxford University Press, vol. 118(3), pages 1007-1047.
    6. Lex Borghans & Angela Lee Duckworth & James J. Heckman & Bas ter Weel, 2008. "The Economics and Psychology of Personality Traits," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    7. Boyce, Christopher J. & Wood, Alex M., 2011. "Personality and the marginal utility of income: Personality interacts with increases in household income to determine life satisfaction," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1-2), pages 183-191, April.
    8. Heidi Tuhkanen & Evelin Urbel-Piirsalu & Tea Nõmmann & Mikołaj Czajkowski & Nick Hanley, 2015. "Valuing the benefits of improved marine environmental quality under multiple stressors," Working Papers 2015-41, Faculty of Economic Sciences, University of Warsaw.
    9. Nyhus, Ellen K. & Pons, Empar, 2005. "The effects of personality on earnings," Journal of Economic Psychology, Elsevier, vol. 26(3), pages 363-384, June.
    10. Karlõševa, Aljona & Nõmmann, Sulev & Nõmmann, Tea & Urbel-Piirsalu, Evelin & Budziński, Wiktor & Czajkowski, Mikołaj & Hanley, Nick, 2016. "Marine trade-offs: Comparing the benefits of off-shore wind farms and marine protected areas," Energy Economics, Elsevier, vol. 55(C), pages 127-134.
    11. Kristine Pakalniete & Juris Aigars & Mikołaj Czajkowski & Solvita Strake & Ewa Zawojska & Nick Hanley, 2016. "Understanding the distribution of economic benefits from improving coastal and marine ecosystems," Working Papers 2016-26, Faculty of Economic Sciences, University of Warsaw.
    12. Dusanee Kesavayuth & Robert E. Rosenman & Vasileios Zikos, 2016. "Retirement, Personality, And Well-Being," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 733-750, April.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Ewa Zawojska & Anna Bartczak & Mikołaj Czajkowski, 2018. "Disentangling the effects of policy and payment consequentiality and risk attitudes on stated preferences," Working Papers 2018-01, Faculty of Economic Sciences, University of Warsaw.
    2. Michela Faccioli & Mikołaj Czajkowski & Klaus Glenk & Julia Martin-Ortega, 2018. "Environmental attitudes and place identity as simultaneous determinants of preferences for environmental goods," Working Papers 2018-08, Faculty of Economic Sciences, University of Warsaw.

    More about this item

    Keywords

    personality; preference heterogeneity; hybrid choice models; stated preferences; choice models;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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