The present paper studies the effect of the COVID-19 pandemic on risk preferences. Using real-time panel data from the year before the pandemic and from the first few months of the pandemic in Germany (April to July 2020), we provide robust evidence that exposure to COVID-19 reduces individual risk tolerance. We establish a causal link between the pandemic and risk tolerance by exploiting longitudinal ...
Rochester :
SSRN,
2020,
43 S.
| Daniel Graeber, Ulrich Schmidt, Carsten Schröder, Johannes Seebauer