Arbeitspapier
Temporal instability of risk preference among the poor: Evidence from payday cycles
The poor live paycheck to paycheck and are repeatedly exposed to strong cyclical income fluctuations. We investigate whether such income fluctuations affect risk preference among the poor. If risk preference temporarily changes around payday, optimal decisions made before payday may no longer be optimal afterward, which could reinforce poverty. By exploiting Social Security payday cycles in the US, we find that risk preference among the poor relying heavily on Social Security changes around payday. Rather than cognitive decline before payday, the deterioration of mental health and relative deprivation may play a role. We find similar evidence among the Japanese elderly.
- Language
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Englisch
- Bibliographic citation
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Series: ISER Discussion Paper ; No. 1133
- Classification
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Wirtschaft
Criteria for Decision-Making under Risk and Uncertainty
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Measurement and Analysis of Poverty
- Subject
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poverty
risk preference
Social Security
mental health
relative deprivation,elderly
Health and Retirement Survey
Japanese Study of Aging and Retirement
- Event
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Geistige Schöpfung
- (who)
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Akesaka, Mika
Eibich, Peter
Hanaoka, Chie
Shigeoka, Hitoshi
- Event
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Veröffentlichung
- (who)
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Osaka University, Institute of Social and Economic Research (ISER)
- (where)
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Osaka
- (when)
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2021
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Akesaka, Mika
- Eibich, Peter
- Hanaoka, Chie
- Shigeoka, Hitoshi
- Osaka University, Institute of Social and Economic Research (ISER)
Time of origin
- 2021
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Time Preference Instability, Financial and Working Status
Preference (in-)stability - a matter of context
Financial instability, cycles and the role of institutions
Commodity cycles and financial instability in emerging economies
Temporal aggregation in political budget cycles
Information and credit cycles: Causes and consequences of financial instability
Non-invasive temporal interference brain stimulation reduces preference on morphine-induced conditioned place preference in rats
Temporal analysis of political instability through descriptive subgroup discovery
Temporal instability of the post-surgical maxillary sinus microbiota
Temporal analysis of political instability through descriptive subgroup discovery
Epigenetic instability caused by absence of CIZ1 drives transformation during quiescence cycles
Preference, die schönsten Varianten : einfache Preference, illustrierte Preference, Preference mit dem Weli, Schreibpreference, steirische Preference, kroatische Preference, russische Preference
Time Preference Instability, Financial and Working Status
Preference (in-)stability - a matter of context
Financial instability, cycles and the role of institutions
Commodity cycles and financial instability in emerging economies
Temporal aggregation in political budget cycles
Information and credit cycles: Causes and consequences of financial instability
Non-invasive temporal interference brain stimulation reduces preference on morphine-induced conditioned place preference in rats
Temporal analysis of political instability through descriptive subgroup discovery
Temporal instability of the post-surgical maxillary sinus microbiota
Temporal analysis of political instability through descriptive subgroup discovery
Epigenetic instability caused by absence of CIZ1 drives transformation during quiescence cycles