AUTHORS: Xiaoxue Sherry Gao, Glenn W. Harrison and Brian Monroe
ABSTRACT: In the quest to better characterize the heterogeneity of risk preferences at the level of the individual agent there are two econometric methods that can be combined. One uses mixture models to allow for individuals to use some combination… more »
AUTHORS: Glenn W. Harrison
ABSTRACT: Causal inference in economics involves inference about unobserved, latent relationships between variables, even when based on evidence from controlled experiments. In economics, most of the interesting structure defining causal hypotheses also reference unobserved, latent variables, and thought experiments defining and using those variables. One type… more »
Published in June 2024 in Labour Economics, Vol. 88.
AUTHORS: Philippe d'Astous and Stephen Shore
ABSTRACT: University programs differ in the subsequent earnings processes of their enrollees, including many features that students might care about to differing degrees such as the level of average earnings, earnings growth, and volatility. Do the… more »
Published in April 2024 in Journal of Financial Economics, Vol. 154.
AUTHORS: Philippe d'Astous and Stephen Shore
ABSTRACT: Theory suggests that increasing idiosyncratic, uninsurable labor income risk may cause individuals to reduce the risk in their financial assets. This relationship is confounded empirically by the tendency of risk tolerant people to… more »
AUTHORS: Linda Andersson Järnberg, Daniela Andrén, Maria Börjesson, Lars Hultkrantz, E. Elisabet Rutström and Elin Vimefalla
ABSTRACT: This study analyzes how the willingness to pay (WTP) for a risk reduction for traffic accidents varies depending on the specific traffic safety measures and whether they are framed as public or private… more »
AUTHORS: Aleksandr Alekseev, Glenn W. Harrison, Morten Lau and Don Ross
ABSTRACT: Theoretical work on stochastic choice mainly focuses on the sources of choice randomness, and less on its economic consequences. We close this gap by developing a method of extracting information about the costs of noise from structural estimates… more »
AUTHORS: Wynn C. Stirling and Don Ross
ABSTRACT: This paper extends stationary Markov chain convergence theory to model discrete-time regular multivariate Markov chains with joint-conditioning transition probability functions that condition the future state of each process on the present states of all processes considered jointly. This result is a formal… more »
Forthcoming, The Geneva Risk and Insurance Review
AUTHORS: Glenn W. Harrison
ABSTRACT: The ability to run experiments, or to see natural data as a quasi-experiment, does not free one from the need for theory when evaluating insurance behavior. Theory can be used to motivate the experimental design, evaluate latent effects… more »
Forthcoming, Georges Dionne (ed.) Handbook of Insurance (New York: Springer, 2024, Third Edition)
AUTHORS: Glenn W. Harrison
ABSTRACT: Our descriptive understanding of observed insurance behavior has been enhanced by considering alternative modeling approaches, and promises to do the same to our normative evaluation of that behavior. Those alternatives come from… more »
AUTHORS: Andre Hofmeyr, Harold Kincaid and Brian Monroe
ABSTRACT: The trust game is the standard experimental measure of trust and reciprocity in the social sciences. However, trust game experiments typically do not satisfy the salience precept, which is required to instantiate a microeconomic system in the lab. In three experiments,… more »
