The ‘fear factor’: Personal experience and risk aversion in times of crisis

Peter Koudijs, Hans-Joachim Voth, 12 April 2014



To paraphrase Larry Summers, some people are scared – just look around. The crisis of 2007–08 took a toll on a lot of people, investors included. What seemed to be a new age of steady, moderately high growth and stable equity returns suddenly turned into the biggest economic crisis since the 1930s:

Topics: Economic history, Financial markets
Tags: behaviour, crisis, financial markets, lending, risk aversion

How can small groups put a stop to bad behaviour? Make it a race for second place

James Andreoni, Laura Katherine Gee, 14 June 2011



We all know of professors who like teaching but prefer to do research. How does our department make sure we put the right effort into our classes? Our neighbours want us to be clean, even when we might want to tidy our yards later. How can neighbours enforce civility while remaining civil? These situations represent a classic problem in social science.

Topics: Frontiers of economic research, Institutions and economics
Tags: behaviour, organisations

Individual losses in a banking crisis have long-lasting effects on expectations and behaviour

Shannon Mudd, Konstantin Pashev, Neven Valev, 2 January 2011



The cost of banking crises is usually measured as the loss of output and the fiscal cost of cleaning up the financial system (e.g. Reinhart and Rogoff 2009, Laeven and Valencia 2010). While these may well be substantial, there is also a third potential cost, which is more long-term and difficult to measure.

Topics: Global crisis
Tags: behaviour, expectations, losses

Is there a link between impatience and procrastination?

Paola Sapienza, Ernesto Reuben, Luigi Zingales, 28 January 2008

Are impatient people also likely to procrastinate? While these two behavioural characteristics are often said to be linked, the authors of CEPR DP6668 use lab, field and survey evidence to test this link empirically and discover that it does exist.

Journalists are entitled to free DP downloads on request; please contact To learn more about subscribing to CEPR's Discussion Paper Series, please visit the CEPR website.

Topics: Financial markets
Tags: behaviour, impatience, procrastination

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