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COVID-19 and economic preferences: Evidence from a panel of cab drivers

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  • Aragon, Fernando M.
  • Bernal, Noelia
  • Bosch, Mariano
  • Molina, Oswaldo

Abstract

This paper studies the impact of the COVID-19 pandemic on risk and time preferences. Using a longitudinal dataset from a survey of cab drivers in Lima (Peru), we document a significant increase in risk tolerance and patience. The changes are heterogeneous and monotonic by age: older cohorts become more risk-taking while younger ones become more patient. Our findings suggest that the pandemic could have affected individuals’ behavior and socioeconomic outcomes via another channel, namely, changes in economic preferences.

Suggested Citation

  • Aragon, Fernando M. & Bernal, Noelia & Bosch, Mariano & Molina, Oswaldo, 2024. "COVID-19 and economic preferences: Evidence from a panel of cab drivers," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 112(C).
    • Handle: RePEc:eee:soceco:v:112:y:2024:i:c:s2214804324000958
    DOI: 10.1016/j.socec.2024.102257
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    Cited by:

    1. Boutin, Delphine & Petifour, Laurene & Megzari, Haris, 2023. "Permanent Instability of Preferences after COVID-19 Crisis: A Natural Experiment from Urban Burkina Faso," IZA Discussion Papers 16075, Institute of Labor Economics (IZA).
    2. Lohmann, Paul M. & Gsottbauer, Elisabeth & You, Jing & Kontoleon, Andreas, 2023. "Anti-social behaviour and economic decision-making: Panel experimental evidence in the wake of COVID-19," Journal of Economic Behavior & Organization, Elsevier, vol. 206(C), pages 136-171.

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    More about this item

    Keywords

    Risk preferences; Time preferences; COVID-19;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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