1 option
Loss Aversion in Politics / Alberto Alesina, Francesco Passarelli.
- Format:
- Book
- Author/Creator:
- Alesina, Alberto.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w21077.
- NBER working paper series no. w21077
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2015.
- Summary:
- We study loss aversion in majority voting. First, we show a status quo bias. Second, loss aversion implies a moderating effect. Third, in a dynamic setting, the effect of loss aversion diminishes with the length of the planning horizon of voters; however, in the presence of a projection bias, majorities are partially unable to understand how fast they will adapt. Fourth, in a stochastic environment, loss aversion yields a significant distaste for risk, but also a smaller attachment to the status quo. The application of these results to a model of redistribution leads to empirically plausible implications.
- Notes:
- Print version record
- April 2015.
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