• Medientyp: E-Book
  • Titel: How Do People Respond to Small Probability Events with Large, Negative Consequences?
  • Beteiligte: Eichenbaum, Martin [Verfasser:in]; Godinho de Matos, Miguel [Verfasser:in]; Lima, Francisco [Verfasser:in]; Rebelo, Sergio T. [Verfasser:in]; Trabandt, Mathias [Verfasser:in]
  • Erschienen: [S.l.]: SSRN, [2021]
  • Erschienen in: NBER Working Paper ; No. w27988
  • Umfang: 1 Online-Ressource (57 p)
  • Sprache: Englisch
  • Entstehung:
  • Anmerkungen: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 2020 erstellt
  • Beschreibung: We study how people react to small probability events with large negative consequences using the outbreak of the COVID-19 epidemic as a natural experiment. Our analysis is based on a unique administrative data set with anonymized monthly expenditures at the individual level. We find that older consumers reduced their spending by more than younger consumers in a way that mirrors the age dependency in COVID-19 case-fatality rates. This differential expenditure reduction is much more prominent for high-contact goods than for low-contact goods and more pronounced in periods with high COVID-19 cases. Our results are consistent with the hypothesis that people react to the risk of contracting COVID-19 in a way that is consistent with a canonical model of risk taking
  • Zugangsstatus: Freier Zugang