Personality-augmented MPC: linking survey and transaction data to explain MPC heterogeneity by big five personality traits
- We investigate the link between Big Five personality traits and the marginal propensity to consume (MPC) for users of a German financial account aggregator app. We use 1,700 survey responses and transaction data of 56,000 app users to assess whether Big Five personality traits help explain MPC heterogeneity. We find that extraversion corresponds to an increase in consumption whereas agreeableness and neuroticism correspond to a decrease in consumption. We test this with trust and risk preferences and find that risk indicates more explanatory power in consumption response than the Big Five. Our findings help policy makers target individuals more efficiently.
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| Author: | Fabian NemeczekORCiD, Jan Radermacher |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-645994 |
| URL: | https://ssrn.com/abstract=4089657 |
| DOI: | https://doi.org/10.2139/ssrn.4089657 |
| Parent Title (English): | SAFE working paper ; No. 348 |
| Series (Serial Number): | SAFE working paper (348) |
| Publisher: | SAFE |
| Place of publication: | Frankfurt am Main |
| Document Type: | Working Paper |
| Language: | English |
| Year of Completion: | 2022 |
| Year of first Publication: | 2022 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2022/05/04 |
| Tag: | Big Five Personality; Marginal Propensity to Consume; Survey Data; Transaction Data |
| Issue: | April 15, 2022 |
| Page Number: | 67 |
| Note: | Financial support from Goethe University Frankfurt and the Leibniz Institute for Financial Research SAFE is gratefully acknowledged. |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF) | |
| 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 |
