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Tomas Jagelka (Crest-Polytechnique) – “Separating Economists' Preferences and Psychologists' Personality Traits”
Time: 12:15 pm – 1:15 pm
Date: 24th of April 2018
Place: Room 3001.
Tomas Jagelka (Crest-Polytechnique) – “Separating Economists’ Preferences and Psychologists’ Personality Traits”
Abstract: Risk and time preferences are at the core of economic decision making and yet we know remarkably little about how they are determined. This paper takes advantage of a unique Canadian field experiment to estimate distributions of individuals’ risk aversion and discount rate parameters. It relates them to four fundamental underlying latent factors which are noisily measured by observed indicators. These factors relate to a subject’s cognitive ability and non-cognitive skills identified as part of the Big Five personality traits. Preferences and factors are estimated jointly through Simulated Maximum Likelihood (SML) using a Random Parameter Model (RPM) of utility. Preliminary results suggest that risk aversion is higher for females and increases with cognitive ability but falls with extraversion and conscientiousness. Discount rates are decreasing in cognitive ability and conscientiousness but rising with extraversion. Lastly, choices become less erratic with high cognitive ability.
Laurent Davezies (CREST – ENSAE), Arne Uhlendorff (CREST – ENSAE) & Yannick Guyonvarch (CREST – ENSAE)
food provided, no registration