COVID-19 and economic preferences: evidence from a panel of cab drivers

Available from: 
May 2022
Paper author(s): 
Fernando Aragon
Noelia Bernal
Mariano Bosch
Oswaldo Molina
Education - Health
Macroeconomics - Economic growth - Monetary Policy

This paper investigates the impact of the COVID-19 pandemic on risk and time preferences. We use a longitudinal dataset from a survey of cab drivers in Lima (Peru) conducted before and nearly a year after the pandemic onset. We find a significant increase in risk tolerance and patience. The magnitude of the effect increases with age and becomes substantially larger for individuals 50 years and older. Our findings suggest that the pandemic could influence individuals’ behaviour and socioeconomic outcomes via another channel, namely changes in economic preferences. 


Research section: 
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