This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 102 No. 6 (October 2012)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

How General Are Risk Preferences? Choices under Uncertainty in Different Domains

Article Citation

Einav, Liran, Amy Finkelstein, Iuliana Pascu, and Mark R. Cullen. 2012. "How General Are Risk Preferences? Choices under Uncertainty in Different Domains." American Economic Review, 102(6): 2606-38.

DOI: 10.1257/aer.102.6.2606

Abstract

We analyze the extent to which individuals' choices over five employer-provided insurance coverage decisions and one 401(k) investment decision exhibit systematic patterns, as would be implied by a general utility component of risk preferences. We provide evidence consistent with an important domain-general component that operates across all insurance choices. We find a considerably weaker relationship between one's insurance decisions and 401(k) asset allocation, although this relationship appears larger for more "financially sophisticated" individuals. Estimates from a stylized coverage choice model suggest that up to 30 percent of our sample makes choices that may be consistent across all 6 domains. (JEL D12, D14, D81, G22, J33)

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (86.70 KB) | Online Appendix (103.91 KB)

Authors

Einav, Liran (Stanford U)
Finkelstein, Amy (MIT)
Pascu, Iuliana (MIT)
Cullen, Mark R. (Stanford U)

JEL Classifications

D12: Consumer Economics: Empirical Analysis
D14: Personal Finance
D81: Criteria for Decision-Making under Risk and Uncertainty
G22: Insurance; Insurance Companies
J33: Compensation Packages; Payment Methods


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us