WP 2017

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

Posted On February 16, 2017
Categories Working Papers, WP 2017

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ABSTRACT: Non-performance lies at the heart of much of the regulation that insurance companies face. We provide a behavioral evaluation of the welfare effects of non-performance risk, keeping close to the canonical theoretical framework of Doherty and Schlesinger [1990]. We find that there is a significant reduction in efficiency, our preferred… more »

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

Posted On February 13, 2017
Categories Working Papers, WP 2017

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ABSTRACT: We study Danish adult gambling behavior with an emphasis on discovering patterns relevant to public health forecasting and economic welfare assessment of policy. Methodological innovations include measurement of formative in addition to reflective constructs, estimation of prospective risk for developing gambling disorder rather than risk of being falsely negatively diagnosed,… more »

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

Posted On January 23, 2017
Categories Working Papers, WP 2017

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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 least where description is concerned. We present evidence, based on a review… more »