Risk Preferences Are Not Time Preferences: Separating Risk and Time Preference: Comment

S-Tier
Journal: American Economic Review
Year: 2015
Volume: 105
Issue: 7
Pages: 2272-86

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Andreoni and Sprenger (2012a,b) observe that utility functions are distinct for risk and time preferences, and show that their findings are consistent with a preference for certainty. We revisit this question in an enriched experimental setting in which subjects make intertemporal decisions under different risk conditions. The observed choice behavior supports a separation between risk attitude and intertemporal substitution rather than a preference for certainty. We further show that several models, including Epstein and Zin (1989); Chew and Epstein (1990); and Halevy (2008) exhibit such a separation and can account for the overall experimental findings. (JEL C91, D81, D91)

Technical Details

RePEc Handle
repec:aea:aecrev:v:105:y:2015:i:7:p:2272-86
Journal Field
General
Author Count
2
Added to Database
2026-01-29