In sickness but not in wealth
Field evidence on patients' risk preferences in the financial and health domain
- When?
- Wednesday 23 January 2013, 2pm to 3pm
- Where?
- 75 MS 02
- Open to:
- Public, Staff, Students
- Speaker:
- Dr Charitini Stavropoulou
- Admission information:
- Email fbelevents@surrey.ac.uk to book your place.
We run a field experiment to assess whether preferences for risk significantly differ across the health and the financial domain. We administrate an experimental test to a sample of 300 patients attending outpatients' clinics in a university hospital in Athens, during the Greek financial crisis. We elicit preferences for risk in a financial context by using variants of the Holt and Laury (2002) paired lotteries test with hypothetical payments. We adapt this test to the health domain framing the lotteries as risky health treatments under a hypothetical health scenario. We estimate the degree of risk aversion for subjects in the sample, in both the financial and the health domain, allowing for the estimates to vary with individual health, income and other control variables. Despite being exposed to both health and financial distress, subjects in our sample tend to be less risk averse in the financial than in the health domain.

