Behavior Towards Risk and Discount Rates: An Empirical Study Using the CJD Crisis as an Experiment

摘要: This paper investigates the effect of a change in risk on households' behavior, focusing heterogenous and endogenous discount rates. The circumvents traditional problems selectivity biases when assessing behavior by using French "Mad Cow" crisis as natural experiment. It exploits suddenness uses panel data set following consumers before after crisis. shows that response to is non linear function level risk. behaviors learning about risks CJD are partly explained Both individuals who most less exposed continue engage risky consumption they learn High displays fatalistic self-select themselves even more into A model based rates calibrated back out perceived households at date