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Replication data for: Estimating Risk Preferences from Deductible Choice

Version
V0
Resource Type
Dataset
Creator
  • Cohen, Alma
  • Einav, Liran
Publication Date
2007-06-01
Description
  • Abstract

    We develop a structural econometric model to estimate risk preferences from data on deductible choices in auto insurance contracts. We account for adverse selection by modeling unobserved heterogeneity in both risk (claim rate) and risk aversion. We find large and skewed heterogeneity in risk attitudes. In addition, women are more risk averse than men, risk aversion exhibits a U-shape with respect to age, and proxies for income and wealth are positively associated with absolute risk aversion. Finally, unobserved heterogeneity in risk aversion is greater than that of risk, and, as we illustrate, has important implications for insurance pricing. (JEL D81, G22)
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/aer.97.3.745 (Text)
Publications
  • Cohen, Alma, and Liran Einav. “Estimating Risk Preferences from Deductible Choice.” American Economic Review 97, no. 3 (May 2007): 745–88. https://doi.org/10.1257/aer.97.3.745.
    • ID: 10.1257/aer.97.3.745 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07

Cohen, Alma; Einav, Liran (2007): Replication data for: Estimating Risk Preferences from Deductible Choice. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E116274