ABSTRACT: Economists and psychologists have sought to model and explain both impulsive behavior and the costly but often successful mechanisms by which people control it. Ainslie  suggests that self-control is often achieved on account of a phenomenon he calls “choice bundling.” This refers to re-framing of series of discrete… more »
ABSTRACT: We study consumers’ responses to removing a saving constraint. Mortgage run-offs predictably relax a saving constraint for borrowers whose mortgage committed them to save by paying down principal. Using the entire Danish population, we identify mortgages on track to run off between 1995 and 2014. We measure the effect of… more »
ABSTRACT: We provide a novel explanation for the low volume of securitization in catastrophe risk transfer using a signaling model. Relative to securitization, reinsurance features lower adverse selection costs because reinsurers possess superior underwriting resources than ordinary capital market investors. Reinsurance premia, however, reflect markups over actuarially fair premia due to the… more »
ABSTRACT: Theoretical work on stochastic choice mainly focuses on the sources of choice randomness, and less on its economic consequences. We attempt to close this gap by developing a method of extracting information about the monetary costs of noise from structural estimates of preferences and choice randomness. Our method is based on… more »
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
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 »
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 »
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 welfare effects of non-performance risk.… 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.
Forthcoming – Journal of Gambling… more »
WP 2017-01 The Empirical Adequacy of Cumulative Prospect Theory and its Implications for Normative Assessment
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 »