Quotation Bu, Di, Hanspal, Tobin, Liao, Yin, Liu, Yong. 2020. Risk Taking, Preferences, and Beliefs: Evidence from Wuhan.




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.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title Risk Taking, Preferences, and Beliefs: Evidence from Wuhan
Year 2020
URL https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3559870


Hanspal, Tobin (Details)
Bu, Di (Macquarie University, Australia)
Liao, Yin (Macquarie University, Australia)
Liu, Yong (Wuhan University of Science and Technology, China)
Institute for Finance, Banking and Insurance IN (Details)
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