Arbeitspapier

HIV/AIDS, Risk Aversion and Intertemporal Choice

This study analyses the relation between perceived health status and intertemporal choice. We use data from experiments with real monetary rewards conduEted among students in South Africa to estimate risk and time preferences. These experimental data, based on muitiple price lists developed by Coller & Williams (1999), Holt & Laury (2002), and Harrison et al. (2002, 2005), show that HIV+ agents and participants that perceive to have a high HIV contraction risk are less risk-averse. Although the latter group displays higher discount rates, HP positive agents seem to have substantially lower discount rates, indicating longer time horizons in spite of their lowered life expectancy. However, we show that direct estimates of discount rates can be seriously biased estimators of the pure rate of time preference when other factors than just the pure rate of time preference are not considered simultaneously. We correct for differential mortality risk, risk aversion and differences in anticipated future marginal utility increases and price in these factors when calculating pure rates of time preference from observed discount rates. Once these factors are taken into account, HIV+ agents’ time preferences conform to expectations.

Sprache
Englisch

Erschienen in
Series: Tinbergen Institute Discussion Paper ; No. 07-098/1

Klassifikation
Wirtschaft
Criteria for Decision-Making under Risk and Uncertainty
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Health: Government Policy; Regulation; Public Health
Thema
discount rate
risk aversion
perceived HIV infection risk
mortality
time preferences
marginal utility
hyperbolic discounting
AIDS
Risikoaversion
Zeitpräferenz
Sterblichkeit
Test
Studierende
Südafrika

Ereignis
Geistige Schöpfung
(wer)
Lammers, Judith
van Wijnbergen, Sweder
Ereignis
Veröffentlichung
(wer)
Tinbergen Institute
(wo)
Amsterdam and Rotterdam
(wann)
2007

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Lammers, Judith
  • van Wijnbergen, Sweder
  • Tinbergen Institute

Entstanden

  • 2007

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