Loss experience for alternative reference points
The table shows loss aversion coefficients for different reference points. Regressions were estimated using the specifications of Table IV. λ (interest rate) takes the lagged 3-month interest rate as a reference point, λ (inflation) the rate of inflation, λ (market past returns) the past market returns as perceived by participants, λ (individual benchmark) the individual benchmark of participants, and λ (portfolio expectations) the expected portfolio return of the previous survey round. The p-values of a Wald test testing for λ = 1 are reported in parentheses.
| . | Based on regression model . | |||||
|---|---|---|---|---|---|---|
| . | (2) . | (3) . | (4) . | (5) . | (6) . | (7) . |
| λ (interest rate) | 1.28 | 1.21 | 1.28 | 1.21 | 1.15 | 1.07 |
| (0.079) | (0.187) | (0.129) | (0.199) | (0.434) | (0.731) | |
| λ (inflation) | 1.28 | 1.21 | 1.28 | 1.21 | 1.15 | 1.07 |
| (0.079) | (0.187) | (0.129) | (0.198) | (0.433) | (0.731) | |
| λ (market past return) | 1.13 | 1.10 | 1.03 | 1.05 | 0.88 | 0.85 |
| (0.257) | (0.361) | (0.825) | (0.658) | (0.378) | (0.288) | |
| λ (individual benchmark) | 1.11 | 1.07 | 1.04 | 1.06 | 0.92 | 0.95 |
| (0.399) | (0.605) | (0.798) | (0.629) | (0.587) | (0.741) | |
| λ (portfolio expectations) | 0.93 | 0.93 | 0.94 | 1.03 | 0.97 | 0.99 |
| (0.589) | (0.620) | (0.677) | (0.814) | (0.847) | (0.954) | |
| . | Based on regression model . | |||||
|---|---|---|---|---|---|---|
| . | (2) . | (3) . | (4) . | (5) . | (6) . | (7) . |
| λ (interest rate) | 1.28 | 1.21 | 1.28 | 1.21 | 1.15 | 1.07 |
| (0.079) | (0.187) | (0.129) | (0.199) | (0.434) | (0.731) | |
| λ (inflation) | 1.28 | 1.21 | 1.28 | 1.21 | 1.15 | 1.07 |
| (0.079) | (0.187) | (0.129) | (0.198) | (0.433) | (0.731) | |
| λ (market past return) | 1.13 | 1.10 | 1.03 | 1.05 | 0.88 | 0.85 |
| (0.257) | (0.361) | (0.825) | (0.658) | (0.378) | (0.288) | |
| λ (individual benchmark) | 1.11 | 1.07 | 1.04 | 1.06 | 0.92 | 0.95 |
| (0.399) | (0.605) | (0.798) | (0.629) | (0.587) | (0.741) | |
| λ (portfolio expectations) | 0.93 | 0.93 | 0.94 | 1.03 | 0.97 | 0.99 |
| (0.589) | (0.620) | (0.677) | (0.814) | (0.847) | (0.954) | |
Loss experience for alternative reference points
The table shows loss aversion coefficients for different reference points. Regressions were estimated using the specifications of Table IV. λ (interest rate) takes the lagged 3-month interest rate as a reference point, λ (inflation) the rate of inflation, λ (market past returns) the past market returns as perceived by participants, λ (individual benchmark) the individual benchmark of participants, and λ (portfolio expectations) the expected portfolio return of the previous survey round. The p-values of a Wald test testing for λ = 1 are reported in parentheses.
| . | Based on regression model . | |||||
|---|---|---|---|---|---|---|
| . | (2) . | (3) . | (4) . | (5) . | (6) . | (7) . |
| λ (interest rate) | 1.28 | 1.21 | 1.28 | 1.21 | 1.15 | 1.07 |
| (0.079) | (0.187) | (0.129) | (0.199) | (0.434) | (0.731) | |
| λ (inflation) | 1.28 | 1.21 | 1.28 | 1.21 | 1.15 | 1.07 |
| (0.079) | (0.187) | (0.129) | (0.198) | (0.433) | (0.731) | |
| λ (market past return) | 1.13 | 1.10 | 1.03 | 1.05 | 0.88 | 0.85 |
| (0.257) | (0.361) | (0.825) | (0.658) | (0.378) | (0.288) | |
| λ (individual benchmark) | 1.11 | 1.07 | 1.04 | 1.06 | 0.92 | 0.95 |
| (0.399) | (0.605) | (0.798) | (0.629) | (0.587) | (0.741) | |
| λ (portfolio expectations) | 0.93 | 0.93 | 0.94 | 1.03 | 0.97 | 0.99 |
| (0.589) | (0.620) | (0.677) | (0.814) | (0.847) | (0.954) | |
| . | Based on regression model . | |||||
|---|---|---|---|---|---|---|
| . | (2) . | (3) . | (4) . | (5) . | (6) . | (7) . |
| λ (interest rate) | 1.28 | 1.21 | 1.28 | 1.21 | 1.15 | 1.07 |
| (0.079) | (0.187) | (0.129) | (0.199) | (0.434) | (0.731) | |
| λ (inflation) | 1.28 | 1.21 | 1.28 | 1.21 | 1.15 | 1.07 |
| (0.079) | (0.187) | (0.129) | (0.198) | (0.433) | (0.731) | |
| λ (market past return) | 1.13 | 1.10 | 1.03 | 1.05 | 0.88 | 0.85 |
| (0.257) | (0.361) | (0.825) | (0.658) | (0.378) | (0.288) | |
| λ (individual benchmark) | 1.11 | 1.07 | 1.04 | 1.06 | 0.92 | 0.95 |
| (0.399) | (0.605) | (0.798) | (0.629) | (0.587) | (0.741) | |
| λ (portfolio expectations) | 0.93 | 0.93 | 0.94 | 1.03 | 0.97 | 0.99 |
| (0.589) | (0.620) | (0.677) | (0.814) | (0.847) | (0.954) | |
This PDF is available to Subscribers Only
View Article Abstract & Purchase OptionsFor full access to this pdf, sign in to an existing account, or purchase an annual subscription.
