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

Fernando Aragón, Noelia Bernal, Mariano Bosch, Oswaldo Molina

Research output: Working paper

Abstract

This paper investigates the impact of the COVID-19 pandemic on risk and time preferences. We use a longitudinal dataset from a survey of cab drivers in Lima (Peru) conducted before and nearly a year after the pandemic onset. We find a significant increase in risk tolerance and patience. The magnitude of the effect increases with age and becomes substantially larger for individuals 50 years and older. Our findings suggest that the pandemic could influence individuals' behaviour and socioeconomic outcomes via another channel, namely changes in economic preferences.
Original languageEnglish
PublisherSimon Fraser University, Department of Economics
Number of pages22
StatePublished - 2022

Publication series

NameDiscussion papers
PublisherSimon Fraser University, Department of Economics
No.dp22-02

Keywords

  • Risk preferences
  • Time preferences
  • COVID-19

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