Code for: Temporal Instability of Risk Preference Among the Poor: Evidence from Payday Cycles

Principal Investigator(s): View help for Principal Investigator(s) Mika Akesaka, Kobe University; Peter Eibich, Max Planck Institute for Demographic Research; Chie Hanaoka, Toyo University; Hitoshi Shigeoka, Simon Fraser University

Version: View help for Version V1

Name	File Type	Size	Last Modified
HRS			08/18/2022 06:38:AM
JGSS			08/18/2022 06:38:AM
JSTAR			08/18/2022 06:38:AM
ReadMe.docx	application/vnd.openxmlformats-officedocument.wordprocessingml.document	35.8 KB	01/31/2023 04:14:PM
ReadMe.pdf	application/pdf	169.1 KB	01/31/2023 04:33:PM
install_ado.do	text/plain	492 bytes	02/21/2023 06:13:AM

Project Citation:

Akesaka, Mika, Eibich, Peter, Hanaoka, Chie, and Shigeoka, Hitoshi. Code for: Temporal Instability of Risk Preference Among the Poor: Evidence from Payday Cycles. Nashville, TN: American Economic Association [publisher], 2023. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2023-09-21. https://doi.org/10.3886/E177641V1

Project Description

Summary: The poor live paycheck to paycheck and are repeatedly exposed to strong cyclical income fluctuations. We investigate whether such income fluctuations affect their risk preference. If risk preference temporarily changes around payday, optimal decisions made before payday may no longer be optimal afterward, which could reinforce poverty. By exploiting Social Security payday cycles in the US, we find that the poor relying heavily on Social Security become more risk tolerant before payday. More than cognitive decline before payday, the deterioration of mental health and relative deprivation are likely to play a role. We find similar evidence among the Japanese elderly.

Funding Sources: JSPS KAKENHI (20H05631, 20K13511, 21H04397, 22K01534, 17K03783, 19H05487, 20K20418, 22K01539, 22H00847, 22H05009)

Scope of Project

Subject Terms: poverty; risk preference; Social Security; mental health ; relative deprivation ; social comparison; elderly ; Health and Retirement Survey; Japanese Study of Aging and Retirement

JEL Classification:
      D81 Criteria for Decision-Making under Risk and Uncertainty
      D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
      I32 Measurement and Analysis of Poverty

Geographic Coverage: United States, Japan

Data Type(s): survey data

Related Publications

Download this project

Published Versions

V1 [2023-09-21]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.