Unbiased Analysis of Today's Healthcare Issues

Risk aversion and health behaviors

Are risk averse individuals less likely to engage in unhealthy behaviors?  According to Anderson and Mellor (JHE 2008), the answer is yes.  Using a Holt and Laury (AER 2002) methodology to measure risk aversion, the authors find that individuals who are risk averse are less likely to smoke, drink, be overweight or drive over the […]

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Risk Aversion in the Laboratory

Many experimental economists have been interested in measuring the level of risk aversion as well as the determinants of risk aversion. These studies often take place in a controlled, laboratory setting and designing an experiment which will elicit responses which are true to life is essential. In “Risk Aversion in the Laboratory,” Harrison and Rutström […]

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How to present your lottery in an economic experiment

How should you present a lottery to a subject of an economic experiment? Is a pie chart the best? What about a Holt & Laury style chart? I have compiled a document (“Lottery Presentation Styles“) to give you some suggestions.

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Would you give up some life expectancy to know the day you will die?

“The best-laid schemes o’ mice an’ men. Gang aft agley” – Robert Burns The only certainty in life is uncertainty. Individuals make plans for their future without knowing how long they will live in reality. Retirement planning, for instance, is very difficult due to uncertain life expectancy. Would you be willing to trade some of […]

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Risk Aversion, Impatience and Cognitive Ability

Are smart people risk averse? Are dumb people impatient? This is what Thomas Dohmen, Armin Falk, David Huffman, Uwe Sunde explore in their 2007 Discussion paper. Using data from a choice experiment of 1000 German adults, the authors tested for risk aversion using a Holt & Laury framework, and for impatience by varying the annual […]

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Survey Measures of Risk Aversion and Prudence

Can we estimate risk aversion and prudence using a survey question for the general public? This is what a paper by Eisenhauer and Ventura attempts to do. Methods In the 1995 Survey of Italian Households’ Income and Wealth, one question asked: You are offered the opportunity of acquiring a security permitting you, with the same […]

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