Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/228784
Authors: 
Bu, Di
Hanspal, Tobin
Liao, Yin
Liu, Yong
Year of Publication: 
2021
Series/Report no.: 
SAFE Working Paper No. 301
Abstract: 
We study risk taking in a panel of subjects in Wuhan, China - before, during the COVID-19 crisis, and after the country reopened. Subjects in our sample traveled for semester break in January, generating variation in exposure to the virus and quarantine in Wuhan. Higher exposure leads subjects to reduce planned risk taking, risky investments, and optimism. Our findings help unify existing studies by showing that aggregate shocks affect general preferences for risk and economic expectations, while heterogeneity in experience further affect risk taking through beliefs about individuals' own outcomes such as luck and sense of control.
Subjects: 
COVID-19
Risk taking
Beliefs
Formative experiences
Expectations
China
JEL: 
G50
G51
G11
D14
G41
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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