Patience, Risk Aversion, and Economic Behavior: Combining Experimental Data with Administrative Register Data
Research output: Book/Report › Ph.D. thesis › Research
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Patience, Risk Aversion, and Economic Behavior : Combining Experimental Data with Administrative Register Data. / Rasmussen, Gregers Nytoft.
2018. 136 p. (University of Copenhagen, Department of Economics. PhD Series; No. 242).Research output: Book/Report › Ph.D. thesis › Research
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TY - BOOK
T1 - Patience, Risk Aversion, and Economic Behavior
T2 - Combining Experimental Data with Administrative Register Data
AU - Rasmussen, Gregers Nytoft
PY - 2018/2
Y1 - 2018/2
N2 - This paper tests whether time and risk preferences are related to behavior on the loan market. Measures of patience and risk aversion are elicited for about 5,000 Danish participants in an incentivized online experiment. The experimental preference measures are matched to individual-level debt behavior in the field as observed in detailed administrative register data. I find that patient individuals have lower ratios of nonmortgage loan to income, postpone the incurrence of their first non-mortgage debt further, pay lower average interest rates on their non-mortgage debt, are less likely to choose mortgages with deferred amortization (interest-only mortgages), and are less likely to be delinquent on loans. Furthermore, the results indicate that risk averse mortgage holders are less likely to choose adjustable-rate mortgages.
AB - This paper tests whether time and risk preferences are related to behavior on the loan market. Measures of patience and risk aversion are elicited for about 5,000 Danish participants in an incentivized online experiment. The experimental preference measures are matched to individual-level debt behavior in the field as observed in detailed administrative register data. I find that patient individuals have lower ratios of nonmortgage loan to income, postpone the incurrence of their first non-mortgage debt further, pay lower average interest rates on their non-mortgage debt, are less likely to choose mortgages with deferred amortization (interest-only mortgages), and are less likely to be delinquent on loans. Furthermore, the results indicate that risk averse mortgage holders are less likely to choose adjustable-rate mortgages.
KW - Faculty of Social Sciences
KW - Wealth inequality
KW - preference heterogeneity
KW - preference elicitation
KW - experimental methods
KW - register data
M3 - Ph.D. thesis
T3 - University of Copenhagen, Department of Economics. PhD Series
BT - Patience, Risk Aversion, and Economic Behavior
ER -
ID: 192466262