Risk taking, preferences, and beliefs: evidence from Wuhan
- We study risk taking in a panel of subjects in Wuhan, China - before, during the COVID-19 crisis, and after the country reopened. Subjects in our sample traveled for semester break in January, generating variation in exposure to the virus and quarantine in Wuhan. Higher exposure leads subjects to reduce planned risk taking, risky investments, and optimism. Our findings help unify existing studies by showing that aggregate shocks affect general preferences for risk and economic expectations, while heterogeneity in experience further affect risk taking through beliefs about individuals’ own outcomes such as luck and sense of control. JEL Classification: G50, G51, G11, D14, G41
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| Author: | Di Bu, Tobin HanspalORCiDGND, Yin Liao, Yong Liu |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-573938 |
| DOI: | https://doi.org/10.2139/ssrn.3559870 |
| Parent Title (English): | SAFE working paper ; No. 301 |
| Series (Serial Number): | SAFE working paper (301) |
| Publisher: | SAFE |
| Place of publication: | Frankfurt am Main |
| Document Type: | Working Paper |
| Language: | English |
| Year of Completion: | 2021 |
| Year of first Publication: | 2021 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2021/01/27 |
| Tag: | Beliefs; COVID-19; China; Expectations; Formative experiences; Risk taking |
| Issue: | December, 2020 |
| Page Number: | 62 |
| HeBIS-PPN: | 475498429 |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF) | |
| Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
| Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE) | |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Deutsches Urheberrecht |
