Working Papers

WP 2017_06 Behavioral Responses to Surveys About Nicotine Dependence

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Published in 2017 in Health Economics, Volume 26, Issue S3.

ABSTRACT: Behavioral responses to surveys can significantly affect inferences about population prevalence unless correctly modeled statistically. An important case study is the prevalence of nicotine dependence, a formal psychiatric disorder satisfying clinical criteria. Data from the National Epidemiologic Survey on Alcohol… more »

WP 2017_05 Experimental Methods and Behavioral Insights in Health Economics: Estimating Risk and Time Preferences in Health

Posted On June 21, 2017
Categories Working Papers, WP 2017

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ABSTRACT: The use of behavioral insights and experimental methods has recently gained momentum among health policy-makers. There is a tendency, however, to reduce behavioral insights applications in health to “nudges,” and to reduce experiments in health to “randomized controlled trials” (RCTs). We argue that there is much more to behavioral insights… more »

WP 2017_04 The Methodologies of Behavioral Econometrics

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Forthcoming – Philosophy and Interdisciplinary Social Science: A Dialogue

ABSTRACT: Behavioral econometrics is one part of a methodological trinity that includes theory, data collection and econometrics. Sometimes, on a good methodological day, there are few demands on the econometrician and the data can just be described and summarized, or elementary statistical… more »

WP 2017-03 Welfare Effects of Insurance Contract Non-Performance

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Forthcoming – The Geneva Risk and Insurance Review

ABSTRACT: Non-performance lies at the heart of much of the regulation that insurance companies face. Consumers’ concerns about non-performance of the insurance provider have also been cited as a possible explanation for low demand of microinsurance. We provide a behavioral evaluation of the… more »

WP 2017-02 Disordered Gambling Prevalence: Methodological Innovations in a General Danish Population Survey

*Note that this paper was previously listed as WP 2016-02 Gambling Problems in the General Danish Population: Survey Evidence, and then was inadvertently reposted as 2017-02. Both links should direct you to this page, and should there be any newer versions, we will update this page.

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Forthcoming – Journal of Gambling… more »

WP 2017-01 The Empirical Adequacy of Cumulative Prospect Theory and its Implications for Normative Assessment

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Published in 2017 in Journal of Economic Methodology, Volume 24, Number 2.

ABSTRACT: Much behavioral welfare economics assumes that expected utility theory (EUT) does not accurately describe most human choice under risk. A substantial literature instead evaluates welfare consequences by taking cumulative prospect theory (CPT) as the natural default alternative, at… more »

WP 2016-12 Stochastic distortion and stochastic distorted copula

Posted On December 20, 2016
Categories Working Papers, WP 2016

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ABSTRACT: Motivated by the wide applications of distortion function and copulas in insurance and finance, this paper generalizes the notion of deterministic distortion function to a stochastic distortion function, i.e., a random process, and employs the defined stochastic distortion function to construct a so-called stochastic distorted copula. One method for constructing… more »

WP 2016-11 Once Bitten, Twice Shy: The Role of Inertia and Personal Experience in Risk Taking

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Forthcoming – Journal of Financial Economics

ABSTRACT: We study how inertia and personal experiences affect individual risk taking. Our research design relies on active portfolio decisions relating to inheritances to separate the effect of personal experiences from inertia, which otherwise would be observationally equivalent. Experience derives from investments in banks that… more »

WP 2016-10 Fire Sales and House Prices: Evidence from Estate Sales due to Sudden Death

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Published in 2017 in Management Science, Volume 63, Number 1.

ABSTRACT: This study investigates when forced sales of real estate turn into fire sales by using a natural experiment which allows us to separate supply and demand effects: Forced sales result from sudden death of house owners and are thus unrelated… more »

WP 2016-09 Psychiatric Measures of Gambling Problems in the General Population: A Reconsideration

Posted On November 3, 2016
Categories Working Papers, WP 2016

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ABSTRACT: Gambling behavior is pervasive, apparently growing, and of methodological and substantive interest to economists. We examine the manner in which the population prevalence of disordered gambling has been estimated. General population surveys have deepened our knowledge of the population prevalence of gambling disorders, as well as the manner in which… more »