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

Glenn W. Harrison; Morten I. Lau; Hong Il Yoo

doi:10.1162/rest_a_00845

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

Glenn W. Harrison¹; Morten I. Lau²; Hong Il Yoo³

¹ Georgia State University · ² Copenhagen Business School and Durham University Business School, Durham University · ³ Durham University Business School, Durham University

The Review of Economics and Statistics 2020 open access

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.

DOI: 10.1162/rest_a_00845
Volume: 102 (3)
Pages: 552-568
Language: en
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