Risk-taking and time preferences of the people could change over time and particularly with crises like COVID-19. In this study, we compared people’s risk and time preferences before Covid and one year after the first vague of Covid. We observe a significant increase in loss aversion and a decrease in present bias reflecting a more cautious behavior on average. The effect however is not the same for everyone. Mainly individuals with negligible tangible assets, no children, and relatively older, became more cautious as a result of Covid.
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See AllAbstract Assuming that money is fungible, income and wealth affect risk aversion. In the present study, we investigate whether the source of money affects risk-related decision-making. We use the perc
Abstract : If we were rational decision-makers, we would consider money fungible, meaning that one dollar, on one hand, has the same value as one dollar on the other hand regardless of the origin of t
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