severinrapp.bsky.social
postdoc @stone-lis.bsky.social //
inequality/household finance //
https://severin-rapp.github.io/ //
foto Wenzel
65 posts
966 followers
480 following
Prolific Poster
Conversation Starter
comment in response to
post
The newly released Version 1.2 does not only expand coverage, but also provides for example regional data for the US! Here is a summary article on the key novelties: wealthproject.gc.cuny.edu/news/article...
comment in response to
post
Read the most recent @stone-lis.bsky.social working paper here: stonecenter.gc.cuny.edu/research/the...
comment in response to
post
The effects are sizable: People who underestimate their rank in the wealth distribution save on average 50% more than those who have accurate perceptions. Our novel instrumental variable approach suggests that misperceptions have a causal impact on behaviour.
comment in response to
post
This figure shows the average savings rate along the income distribution for 1. individuals who underestimate their rank in the wealth distribution (top line), and those with accurate perceptions and overestimators
comment in response to
post
This figure shows misperceptions along the net wealth distribution (perceived decile in the wealth distribution minus actual rank). The graph reveals a strong tendency towards the middle (the wealthy tend to overestimate, and low-wealth individuals underestimate).
comment in response to
post
We provide evidence that misperceptions are not an artefact of #survey response behaviour, but that individuals actually save more as the model predicts. This is direct evidence for #wealth in #utility preferences (that feature in a lot of recent #Econ theory).
comment in response to
post
In our new working paper, we extend our previous work and offer a model that shows how misperceptions of one's wealth rank affect savings. People who think that they are relatively less wealthy save more than others.
comment in response to
post
brilliant thank you!
comment in response to
post
☝️
comment in response to
post
do not hesitate to reach out to @smaexie.bsky.social or me if you have any questions!
comment in response to
post
👏
comment in response to
post
current wp version: severin-rapp.github.io/assets/subwl...
comment in response to
post
Here is the key graph, showing that along the income distribution, savings rates are higher among individuals who underestimate their wealth rank (the top line) versus those who have accurate perceptions or overestimate their relative affluence.
comment in response to
post
The paper discusses how people's (miss)perceptions of their rank in the wealth distribution affect savings choices. We find that underestimating one's rank leads to higher savings rates and we introduce a new IV to show that this relationship may be causal!
comment in response to
post
I think one of the key aspects though that @norawaitkus.bsky.social @marentoft.bsky.social and Mike Savage point out is debt, the approach different people have to debt and how it is connected to social class.
Obviously there are many more things in the intervention ... definitely worth a read 📖
comment in response to
post
A cool empirical take on this I think can be found here: www.nber.org/system/files...
comment in response to
post
& hier presse coverage: www.diepresse.com/18851534/neu...
comment in response to
post
Wow, congratulations!
comment in response to
post
This work was made possible by several fantastic research assistants: @lorenzbodner.bsky.social Hannah Massenbauer, Mathias Donabaum, Paula Breyer, Mirjana Kovacevic and Max Schwarzenbacher