Time Preferences are Risk Preferences: Measuring Correlations Across Behavioral Traits
Link al seminario: https://loyola.webex.com/meet/rede3c
Abstract: We jointly estimate risk and time preference parameters using existing data. Our identification paradigm calls for a random preference model in which we allow for correlation between risk and time preference parameters. Confirming (mostly) the descriptive evidence in the literature, we find that risk and time preferences are positively correlated: more risk-averse individuals discount the future comparatively more. Our reduced form analysis also discloses instances of hyperbolic discounting and present bias.