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The Impact of Income Fluctuations on Risk Preferences Among the Poor

ByThe Short Paper

Temporal Instability of Risk Preference among the Poor: Evidence from Payday Cycles This study explores how the income fluctuations experienced by low-income individuals affect their risk preferences. The researchers focused on the impact of payday cycles in the United States and found that those heavily reliant on social security became more risk-tolerant before payday. This…

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How Households Self-Insure Against Job Loss: Insights from Data

ByThe Short Paper

How Do Households Respond to Job Loss? Lessons from Multiple High-Frequency Datasets Researchers have used data from a large bank and government sources to understand how households cope with job loss. Over a two-year period, households reduce their spending by 30% of the income they lose due to job loss. The primary method of self-insurance…