Publication
How do people respond to small probability events with large, negative consequences?
| dc.contributor.author | Eichenbaum, Martin | |
| dc.contributor.author | Matos, Miguel Godinho de | |
| dc.contributor.author | Lima, Francisco | |
| dc.contributor.author | Trabandt, Mathias | |
| dc.contributor.author | Rebelo, Sergio | |
| dc.date.accessioned | 2021-05-10T09:36:40Z | |
| dc.date.available | 2021-05-10T09:36:40Z | |
| dc.date.issued | 2020-10 | |
| dc.description.abstract | We study how people react to small probability events with large negative consequences using the outbreak of the COVID-19 epidemic as a natural experiment. Our analysis is based on a unique administrative data set with anonymized monthly expenditures at the individual level. We find that older consumers reduced their spending by more than younger consumers in a way that mirrors the age dependency in COVID-19 case-fatality rates. This differential expenditure reduction is much more prominent for high-contact goods than for low-contact goods and more pronounced in periods with high COVID-19 cases. Our results are consistent with the hypothesis that people react to the risk of contracting COVID-19 in a way that is consistent with a canonical model of risk taking. | pt_PT |
| dc.description.version | info:eu-repo/semantics/publishedVersion | pt_PT |
| dc.identifier.doi | 10.3386/w27988 | pt_PT |
| dc.identifier.issn | 0898-2937 | |
| dc.identifier.uri | http://hdl.handle.net/10400.14/32950 | |
| dc.language.iso | eng | pt_PT |
| dc.title | How do people respond to small probability events with large, negative consequences? | pt_PT |
| dc.type | working paper | |
| dspace.entity.type | Publication | |
| oaire.citation.title | National Bureau of Economic Research (NBER) | pt_PT |
| oaire.citation.volume | 27988 | pt_PT |
| person.familyName | Godinho de Matos | |
| person.givenName | Miguel | |
| person.identifier.ciencia-id | 4217-C942-9E6F | |
| person.identifier.orcid | 0000-0002-6333-2753 | |
| person.identifier.rid | M-3545-2013 | |
| person.identifier.scopus-author-id | 56757598200 | |
| rcaap.rights | openAccess | pt_PT |
| rcaap.type | workingPaper | pt_PT |
| relation.isAuthorOfPublication | c9055da8-5ee5-422f-914b-8f5363ea3db9 | |
| relation.isAuthorOfPublication.latestForDiscovery | c9055da8-5ee5-422f-914b-8f5363ea3db9 |
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