Risk attitudes, sample selection and attrition in a longitudinal field experiment

Harrison, Glenn W.; Lau, Morten; Yoo, Hong II

Risk attitudes, sample selection and attrition in a longitudinal field experiment

Harrison, Glenn W.; Lau, Morten; Yoo, Hong II

Authors

Glenn W. Harrison

Professor Morten Lau m.i.lau@durham.ac.uk
Professor

Hong II Yoo

Abstract

Longitudinal experiments allow one to evaluate the temporal stability of latent preferences, but raise concerns about sample selection and attrition that may confound inferences about temporal stability. We evaluate the hypothesis of temporal stability in risk preferences using a remarkable data set that combines socio-demographic information from the Danish Civil Registry with information on risk attitudes from a longitudinal field experiment. Our experimental design builds in explicit randomization on the incentives for participation. The results show that the use of different participation incentives can affect sample response rates and help one identify the effects of selection. Correcting for endogenous sample selection and panel attrition changes inferences about risk preferences in an economically and statistically significant manner. We draw mixed conclusions on temporal stability of risk preferences that depend on which aspect of temporal stability one is interested in.

Citation

Harrison, G. W., Lau, M., & Yoo, H. I. (2017). Risk attitudes, sample selection and attrition in a longitudinal field experiment

Publication Date	Jan 1, 2017
Deposit Date	May 31, 2019
Publicly Available Date	May 31, 2019
Series Title	Durham University Business School working papers series
Public URL	https://durham-repository.worktribe.com/output/1167614
Publisher URL	https://www.dur.ac.uk/business/research/economics/working-papers/