COVID-19 Has Little Influence on Risk Preferences

A new analysis by Daniel Graeber, Ulrich Schmidt, Carsten Schröder, and  Johannes Seebauer, based on SOEP data and regional variation in infection rates, shows that individual risk preferences remain largely stable despite rising financial worries and anxiety. The findings suggest that a pandemic primarily changes the immediate decision-making environment rather than individuals’ underlying preferences.

Graeber, Daniel, Ulrich Schmidt, Carsten Schröder, and Johannes Seebauer. 2026. Navigating uncertainty: Do communicable diseases influence risk preferences? Journal of Risk and Uncertainty. https://doi.org/10.1007/s11166-026-09497-7