Citation

Discussion Paper Details

Please find the details for DP15108 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Risk Preferences at the Time of COVID-19: An Experiment with Professional Traders and Students

Author(s): Marco Angrisani, Marco Cipriani, Antonio Guarino, Ryan Kendall and Julen Ortiz de Zarate Pina

Publication Date: July 2020

Keyword(s): COVID-19, Experimental economics, financial markets professional and risk aversion

Programme Area(s): Financial Economics

Abstract: We study whether the COVID-19 pandemic has impacted risk preferences, comparing the results of experiments conducted before and during the outbreak. In each experiment, we elicit risk preferences from two sample groups: professional traders and undergraduate students. We find that, on average, risk preferences have remained constant for both pools of participants. Our results suggest that the increases in risk premia observed during the pandemic are not due to changes in risk appetite; rather, they are solely due to a change in beliefs by market participants. The findings of our paper support the traditional view that, at least on average, risk preferences are not affected by economic or social circumstances.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=15108

Bibliographic Reference

Angrisani, M, Cipriani, M, Guarino, A, Kendall, R and Ortiz de Zarate Pina, J. 2020. 'Risk Preferences at the Time of COVID-19: An Experiment with Professional Traders and Students '. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=15108