Development

Income Risk, Precautionary Saving, and Loss Aversion – An Empirical Test

This paper empirically examines the behavioral precautionary saving hypothesis by Kőszegi and Rabin (2009) stating that uncertainty about future income triggers saving because of loss aversion. We extend their theoretical analysis to also …

Nudging or Paying? Evaluating the Effectiveness of Measures to Contain COVID-19 in Rural Bangladesh in a Randomized Controlled Trial

Nudging or Paying? Evaluating the Effectiveness of Measures to Contain COVID-19 in Rural Bangladesh in a Randomized Controlled Trial

Measuring Utility – An Application to Higher Order Risk and Saving in Bogota

Measuring utility is at the heart of microeconomics and has important applications in many areas of economics. Here we present a new experimental method to elicit utility functions and associated measures of (higher order) risk preferences. The …