Are Policymakers Ambiguity Averse?

A-Tier
Journal: Economic Journal
Year: 2020
Volume: 130
Issue: 626
Pages: 331-355

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

We investigate the ambiguity preferences of a unique sample of real-life policymakers at the Paris UN climate conference (COP21). We find that policymakers are generally ambiguity averse. Using a simple design, we are moreover able to show that these preferences are not necessarily due to an irrational behaviour, but rather to intrinsic preferences over unknown probabilities. Exploring the heterogeneity within our sample, we also show that the country of origin and the degree of quantitative sophistication affect policymakers' attitudes towards compound risk, but not towards ambiguity. Robustness results are obtained in a lab experiment with a sample of university students.

Technical Details

RePEc Handle
repec:oup:econjl:v:130:y:2020:i:626:p:331-355.
Journal Field
General
Author Count
2
Added to Database
2026-01-24