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

Aragon F.M.; Bernal N.; Bosch M.; Molina O. · Journal of Behavioral and Experimental Economics (2024) · DOI: 10.1016/j.socec.2024.102257

Resumen

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.

Instituciones: Universidad del Pacífico