Risk and Time Preferences: Linking Experimental and Household Survey Data from Vietnam
American Economic Review
vol. 100,
no. 1, March 2010
(pp. 557-71)
Abstract
We conducted experiments in Vietnamese villages to determine the predictors of risk and time preferences. In villages with higher mean income, people are less loss-averse and more patient. Household income is correlated with patience but not with risk. We expand measurements of risk and time preferences beyond expected utility and exponential discounting, replacing those models with prospect theory and a three-parameter hyperbolic discounting model. Comparable risk parameter estimates have been found for Chinese farmers, using our method. (C83, D12, O12, P38)Citation
Tanaka, Tomomi, Colin F. Camerer, and Quang Nguyen. 2010. "Risk and Time Preferences: Linking Experimental and Household Survey Data from Vietnam." American Economic Review, 100 (1): 557-71. DOI: 10.1257/aer.100.1.557Additional Materials
JEL Classification
- C83 Survey Methods; Sampling Methods
- D12 Consumer Economics: Empirical Analysis
- O12 Microeconomic Analyses of Economic Development
- P36 Socialist Institutions and Their Transitions: Consumer Economics; Health; Education and Training: Welfare, Income, Wealth, and Poverty