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Getting to the Top of Mind : How Reminders Increase Saving
Karlan, Dean - 2010
fully attend to consumption in all periods but fail to attend to some future lumpy expenditure opportunities. This asymmetry … expenditure. We find support for these predictions in three field experiments that randomly assign reminders to new savings …
Persistent link: https://www.econbiz.de/10012462450
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Neglected Risks, Financial Innovation, and Financial Fragility
Gennaioli, Nicola - 2010
We present a standard model of financial innovation, in which intermediaries engineer securities with cash flows that investors seek, but modify two assumptions. First, investors (and possibly intermediaries) neglect certain unlikely risks. Second, investors demand securities with safe cash...
Persistent link: https://www.econbiz.de/10012462586
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Neglected Risks : The Psychology of Financial Crises
Gennaioli, Nicola - 2015
We model a financial market in which investor beliefs are shaped by representativeness. Investors overreact to a series of good news, because such a series is representative of a good state. A few bad news do not change investor minds because the good state is still representative, but enough...
Persistent link: https://www.econbiz.de/10012457791
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Housing Wealth Isn't Wealth
Buiter, Willem H. - 2008
fundamental value of the house they own exceeds the present discounted value of their planned future consumption of housing … is no pure wealth effect on consumption from a change in house prices if this represents a change in fundamental value …. There is a pure wealth effect on consumption from a change in house prices if this reflects a change in the speculative …
Persistent link: https://www.econbiz.de/10012464443
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Consumption and Portfolio Choice with Option-Implied State Prices
Aït-Sahalia, Yacine - 2008
We propose an empirical implementation of the consumption-investment problem using the martingale representation … and probabilities, which generate variation in consumption, and the consumption smoothing induced by risk aversion. Using … options-implied information, we find quantitatively different optimal consumption and portfolio policies than those implied by …
Persistent link: https://www.econbiz.de/10012464793
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Individual Laboratory-Measured Discount Rates Predict Field Behavior
Chabris, Christopher F. - 2008
We estimate discount rates of 555 subjects using a laboratory task and find that these individual discount rates predict inter-individual variation in field behaviors (e.g., exercise, BMI, smoking). The correlation between the discount rate and each field behavior is small: none exceeds 0.28 and...
Persistent link: https://www.econbiz.de/10012464379
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Procrastination and Impatience
Reuben, Ernesto - 2007
There is a large body of literature documenting both a preference for immediacy and a tendency to procrastinate. O'Donoghue and Rabin (1999a,b, 2001) and Choi et al. (2005) model these behaviors as the two faces of the same phenomenon. In this paper, we use a combination of lab, field, and...
Persistent link: https://www.econbiz.de/10012464933
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On the Interaction of Memory and Procrastination : Implications for Reminders
Ericson, Keith M. Marzilli - 2014
I examine the interaction between present-bias and limited memory. Individuals in the model must choose when and whether to complete a task, but may forget or procrastinate. Present-bias expands the effect of memory: it induces delay and limits take-up of reminders. Cheap reminder technology can...
Persistent link: https://www.econbiz.de/10012458285
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Confucianism and Preferences : Evidence from Lab Experiments in Taiwan and China
Liu, Elaine M. - 2013
This paper investigates how Confucianism affects individual decision making in Taiwan and in China. We found that Chinese subjects in our experiments became less accepting of Confucian values, such that they became significantly more risk loving, less loss averse, and more impatient after being...
Persistent link: https://www.econbiz.de/10012459046
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The Beta-Delta-DELTA Sweet Spot
Laibson, David I.; Maxted, Peter - National Bureau of Economic Research - 2023
When solving discrete-time consumption models with present-biased time preferences, backwards induction generates …
Persistent link: https://www.econbiz.de/10013537716