WP 2020

WP 2020-14 Behavioral Welfare Economics and Risk Preferences: A Bayesian Approach

Posted On August 6, 2020
Categories Working Papers, WP 2020

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AUTHORS: Xiaoxue Sherry Gao, Glenn W. Harrison and Rusty Tchernis

ABSTRACT: We propose the use of Bayesian estimation of risk preferences of individuals for applications of behavioral welfare economics to evaluate observed choices that involve risk. Bayesian estimation provides more systematic control of the use of informative priors over inferences… more »

WP 2020-12 Do No Harm? The Welfare Consequences of Behavioural Interventions

Posted On July 21, 2020
Categories Working Papers, WP 2020

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AUTHORS: Glenn Harrison, Karlijn Morsink, and Mark Schneider

ABSTRACT: The rapid expansion of access to finance, low levels of financial literacy, and increasing complexity of financial products, raises serious concerns about the extent to which consumers are able to make financial decisions that increase consumer welfare. We evaluate the consumer… more »

WP 2020-09 Constant Discounting, Temporal Instability and Dynamic Inconsistency in Denmark: A Longitudinal Field Experiment

Posted On July 9, 2020
Categories Working Papers, WP 2020

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AUTHORS: Glenn W. Harrison, Morten I. Lau and Hong Il Yoo

ABSTRACT: Evidence that individuals have dynamically inconsistent preferences is usually generated by studying individual discount rates over different horizons, but where those discount rates are elicited at a single point in time. If these elicited discount rates are constant… more »

WP 2020-07 Literacy and the Quality of Index Insurance Decisions

Posted On February 27, 2020
Categories Working Papers, WP 2020

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AUTHORS: Glenn Harrison, Karlijn Morsink and Mark Schneider

ABSTRACT: There is widespread concern in developing countries with the expansion of formal insurance products to help manage significant risks. These concerns arise primarily from a lack of understanding of insurance products, general failures of financial literacy and the need to use… more »

WP 2020-06 Risk Perceptions in the Virtual Wilderness: An Application to Wild Fires

Posted On February 26, 2020
Categories Working Papers, WP 2020

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AUTHORS: Glenn W. Harrison, Jared M. Johnson and E. Elisabet Rutström

ABSTRACT: In economic decision making most subjective probabilities are formed in a compound manner, through the interaction of multiple attributes of events, each of which have likelihoods that are unknown to various degrees. We consider how subjectively formed risk… more »

WP 2020-05 Should I Stay or Should I Go? Equilibrium Selection in a Transportation Network

Posted On February 12, 2020
Categories Working Papers, WP 2020

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AUTHORS: Enrica Carbone, Vinayak V. Dixit, and E. Elisabet Rutström

ABSTRACT: When imposing congestion pricing in a transportation network, especially around city centers, there is an expressed concern that commercial activities will have to consider relocating. Such relocations can be both risky and costly. Charges… more »