@article {11747,
	title = {TEMPORAL INSTABILITY OF RISK PREFERENCE AMONG THE POOR: EVIDENCE FROM PAYDAY CYCLES},
	number = { 28784},
	year = {2021},
	institution = {National Bureau of Economic Research},
	address = {Cambridge, MA},
	abstract = {The poor live paycheck to paycheck and are repeatedly exposed to strong cyclical income  fluctuations. We investigate whether such income fluctuations affect risk preference among the  poor. If risk preference temporarily changes around payday, optimal decisions made before  payday may no longer be optimal afterward, which could reinforce poverty. By exploiting Social  Security payday cycles in the US, we find that risk preference among the poor relying heavily on  Social Security changes around payday. Rather than cognitive decline before payday, the  deterioration of mental health and relative deprivation may play a role. We find similar evidence  among the Japanese elderly. 
},
	keywords = {Income, instability, payday cycles, Risk preference},
	doi = {10.3386/w28784},
	author = {Akesaka, Mika and Eibich, Peter and Hanaoka, Chie and Shigeoka, Hitoshi}
}
