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Assimilation In The Risk Preferences Of Spouses

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  • Salvatore Di Falco
  • Ferdinand M. Vieider

Abstract

We use correlations in the risk preferences of spouses as a testbed of whether preferences are socially transmitted, rather than being innate as traditionally assumed in economics. We obtain rich measurements of the risk preferences of cohabiting spouses in the rural Ethiopian highlands. This allows us to use correlation coefficients at the level of the couple in regression analysis. We find a strong correlation between the strength of the correlation in risk preferences within a couple and how long a couple has been married. This provides direct evidence for assimilation in the risk preference of spouses, and thus for social transmission of preferences. Assortative mating appears to be less important. (JEL C93, D03, D80, O12)

Suggested Citation

  • Salvatore Di Falco & Ferdinand M. Vieider, 2018. "Assimilation In The Risk Preferences Of Spouses," Economic Inquiry, Western Economic Association International, vol. 56(3), pages 1809-1816, July.
    • Handle: RePEc:bla:ecinqu:v:56:y:2018:i:3:p:1809-1816
    DOI: 10.1111/ecin.12531
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    References listed on IDEAS

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    Cited by:

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    4. Tsegaye Ginbo & Helena Hansson, 2023. "Intra-household risk perceptions and climate change adaptation in sub-Saharan Africa," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(3), pages 1039-1063.
    5. Boto-García, David & Bucciol, Alessandro, 2023. "Couple and individual willingness to take risks," Journal of Economic Psychology, Elsevier, vol. 99(C).
    6. Thomas Meissner & Xavier Gassmann & Corinne Faure & Joachim Schleich, 2023. "Individual characteristics associated with risk and time preferences: A multi country representative survey," Journal of Risk and Uncertainty, Springer, vol. 66(1), pages 77-107, February.
    7. Ranoua Bouchouicha & Ferdinand M. Vieider, 2019. "Growth, entrepreneurship, and risk-tolerance: a risk-income paradox," Journal of Economic Growth, Springer, vol. 24(3), pages 257-282, September.
    8. Anja Köbrich León & Janosch Schobin, 2022. "Romance and the ozone layer: panel evidence on green behavior in couples," Empirical Economics, Springer, vol. 63(4), pages 2101-2123, October.
    9. Aristidis K. Nikoloulopoulos & Peter G. Moffatt, 2019. "Coupling Couples With Copulas: Analysis Of Assortative Matching On Risk Attitude," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 654-666, January.

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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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