We thank the U.S. National Science Foundation for research support under grants NSF/IIS 9817518 and NSF/HSD 0527675, and the Danish Social Science Research Council for research support under project #24-02-0124. We are grateful to two referees for helpful comments. Please address correspondence to: Glenn W. Harrison, Department of Economics, University of Central Florida, P.O. Box 161400, Orlando, FL 32816-1400. E-mail: email@example.com.
LOST IN STATE SPACE: ARE PREFERENCES STABLE?*
Article first published online: 23 JUL 2008
© 2008 the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association
International Economic Review
Volume 49, Issue 3, pages 1091–1112, August 2008
How to Cite
Andersen, S., Harrison, G. W., Lau, M. I. and Elisabet Rutström, E. (2008), LOST IN STATE SPACE: ARE PREFERENCES STABLE?. International Economic Review, 49: 1091–1112. doi: 10.1111/j.1468-2354.2008.00507.x
Manuscript received September 2005; revised April 2007.
- Issue published online: 23 JUL 2008
- Article first published online: 23 JUL 2008
We use field experiments to examine the temporal stability of risk preferences. Over a 17-month period, we elicited risk preferences from subjects chosen to be representative of the adult Danish population. During this period we revisited many of these subjects and repeated a risk aversion elicitation task. We find some variation in risk attitudes over time, but we do not detect a general tendency for risk attitudes to increase or decrease over a 17-month span. The results also suggest that risk preferences are state contingent with respect to personal finances.