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Deciphering the influence of the macroeconomic environment on economic preferences: A comprehensive analysis of the Global Preferences Survey

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  • Li, Haoyang
  • Zhang, Xiaomeng

Abstract

This study investigates the nuanced impact of macroeconomic conditions on various economic preferences, broadening the scope beyond conventional risk preference analysis. Utilizing the Global Preference Survey data with a sophisticated nonlinear regression model, we reveal that favorable macroeconomic conditions boost patience, yet simultaneously reduce risk aversion, altruism, willingness to penalize unfair actions, and trust levels. These significant shifts in economic preferences, driven by macroeconomic scenarios, carry substantial implications for financial markets, investment behaviors, and the broader macroeconomy, necessitating in-depth exploration in financial research and policy design.

Suggested Citation

  • Li, Haoyang & Zhang, Xiaomeng, 2023. "Deciphering the influence of the macroeconomic environment on economic preferences: A comprehensive analysis of the Global Preferences Survey," Finance Research Letters, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323005706
    DOI: 10.1016/j.frl.2023.104198
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    Cited by:

    1. Li, Xun & Cui, Yingjie & Zhang, Lu & Chen, Yuan & Yu, Qikexin, 2024. "Signature size and individual preferences," Economic Modelling, Elsevier, vol. 137(C).

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    More about this item

    Keywords

    Economic preferences; Macroeconomics environment; Non-linear regression;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy

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