Similar Search Results

Khaw, Mel Win - 2017

The theory of expected utility maximization (EUM) explains risk aversion as due to diminishing marginal utility of … need for a nonlinear utility-of-wealth function, and instead results from a sort of perceptual bias -- but one that … numerical cognition, and test its ability to explain the choice frequencies that we observe in a laboratory experiment …

Persistent link: https://www.econbiz.de/10012455387

Guns, Latrines, and Land Reform : Private Expectations and Public Policy

Kremer, Michael - 2016

Dynamically and statically optimal Pigouvian subsidies on durables will differ in a growing economy. For durables with positive externalities, such as sanitation, statically optimal subsidies will typically grow. However, in a dynamic game, governments can most cheaply induce optimal purchasing...

Persistent link: https://www.econbiz.de/10012456757

International Evidence on Sticky Consumption Growth

Carroll, Christopher D. - 2008

We estimate the degree of 'stickiness' in aggregate consumption growth (sometimes interpreted as reflecting consumption habits) for thirteen advanced economies. We find that, after controlling for measurement error, consumption growth has a high degree of autocorrelation, with a stickiness...

Persistent link: https://www.econbiz.de/10012464771

Sticky Expectations and Consumption Dynamics

Carroll, Christopher D. - 2018

Macroeconomic models often invoke consumption "habits" to explain the substantial persistence of aggregate consumption growth. But a large literature has found no evidence of habits in microeconomic datasets that measure the behavior of individual households. We show that the apparent conflict...

Persistent link: https://www.econbiz.de/10012453337

The Effect of Prior Choices on Expectations and Subsequent Portfolio Decisions

Kuhnen, Camelia M. - 2017

We document that prior portfolio choices influence investors' expectations about asset values, and their future choices. We find that people update more from information consistent with their prior choices, leading to sticky portfolios over time. These effects are related to how the brain's...

Persistent link: https://www.econbiz.de/10012455243

Macroeconomic Expectations and Credit Card Spending

Galashin, Misha - 2020

How do macroeconomic expectations affect consumer decisions? We examine this question using a natural field experiment … future inflation and the nominal exchange rate and combine this with an information-provision experiment that generates … subjects' credit card transactions and balances. The experiment is designed to test three standard predictions from models of …

Persistent link: https://www.econbiz.de/10012482499

Judges, Juveniles and In-group Bias

Depew, Briggs - 2016

We investigate the existence of in-group bias (preferential treatment of one's own group) in court decisions. Using the … to judges, we find evidence for negative racial in-group bias in judicial decisions. All else the same, black (white … of negative in-group bias, based on a randomization design outside of the lab. Explanations for this finding are provided …

Persistent link: https://www.econbiz.de/10012456670

Beliefs About the Economy are Excessively Sensitive to Household-Level Shocks : Evidence from Linked Survey and Administrative Data

Taubinsky, Dmitry; Butera, Luigi; Saccarola, Matteo; … - National Bureau of Economic Research - 2024

We study how people's beliefs about the economy covary with household-level events, utilizing a unique link between Danish administrative data and a large-scale survey of consumer expectations. We find that compared to actual inflation, people's inflation forecasts covary much more strongly (and...

Persistent link: https://www.econbiz.de/10014635627

Crash Beliefs From Investor Surveys

Goetzmann, William N. - 2016

evidence consistent with an availability bias. Adverse market events made salient by financial press are associated with higher …

Persistent link: https://www.econbiz.de/10012456532

Wall Street vs. Main Street : An Evaluation of Probabilities

Lumsdaine, Robin L. - 2013

This paper challenges recent conventional wisdom of a divide between Main Street (the average American consumer) and Wall Street (financial market participants). The views of survey respondents regarding the likelihood of stock index returns exceeding specific thresholds are compared to market...

Persistent link: https://www.econbiz.de/10012459558