Do risk and time preferences have biological roots?

Publisher: John Wiley & Sons Inc

E-ISSN: 2325-8012|82|1|235-256

ISSN: 0038-4038

Source: SOUTHERN ECONOMIC JOURNAL, Vol.82, Iss.1, 2015-07, pp. : 235-256

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Abstract

We revisit the claims about the biological underpinnings of economic behavior by specifically exploring if observed gender differences in risk/time preferences can be explained by natural fluctuations in progesterone/estradiol levels during the menstrual cycle and by prenatal exposure to testosterone and estrogen levels. We find no effect of the menstrual cycle (and thereby, of associated fluctuations in progesterone and estradiol levels) or of the digit ratio on either risk or time preferences.