Akesaka, Mika; Eibich, Peter; Hanaoka, Chie; Shigeoka, … - 2021 - Current version: May 3, 2021
The poor live paycheck to paycheck and are repeatedly exposed to strong cyclical income fluctuations. We investigate whether such income fluctuations affect risk preference among the poor. If risk preference temporarily changes around payday, optimal decisions made before payday may no longer be...
