Publications
Publications
- September 2012
- Annual Review of Economics
The Relationship Between Economic Preferences and Psychological Personality Measures
By: Anke Becker, Thomas Deckers, Thomas Dohmen, Armin Falk and Fabian Kosse
Abstract
Although both economists and psychologists seek to identify determinants of heterogeneity in behavior, they use different concepts to capture them. In this review, we first analyze the extent to which economic preferences and psychological concepts of personality, such as the Big Five and locus of control, are related. We analyze data from incentivized laboratory experiments and representative samples and find only low degrees of association between economic preferences and personality. We then regress life outcomes (such as labor market success, health status, and life satisfaction) simultaneously on preference and personality measures. The analysis reveals that the two concepts are rather complementary when it comes to explaining heterogeneity in important life outcomes and behavior.
Keywords
Risk Preference; Time Preference; Social Preferences; Locus Of Control; Big Five; Economics; Behavior; Personal Characteristics
Citation
Becker, Anke, Thomas Deckers, Thomas Dohmen, Armin Falk, and Fabian Kosse. "The Relationship Between Economic Preferences and Psychological Personality Measures." Annual Review of Economics 4 (September 2012): 453–478.