Table 2

Depression and Behavioral Risk Preferences, Regression Results Using the 2014 SOEP Risk Experiment

(1)(2)(3)
Panel A: Nonparametric Logit Regressions
Depression

1.187

(0.126)

1.156

(0.127)

1.222*

(0.146)

ControlsNoYesYes
Observations3,6403,5082,980
Clusters910877745
Panel B: Structural 1 Model Estimates
Relative risk aversion (Embedded Image equation)
Depression

–0.095

(0.062)

–0.086

(0.061)

–0.101*

(0.057)

Constant

0.182***

(0.025)

–0.107

(0.137)

–0.012

(0.145)

Probability weighting factor (Embedded Image equation)
Depression

0.093

(0.067)

0.091

(0.067)

0.111*

(0.063)

Constant

0.832***

(0.027)

0.828***

(0.027)

0.730***

(0.023)

ControlsNoYesYes
Obs.10,92010,5248,940
Persons910877745

  • ↵Notes: SOEP-IS.2016.2 2014. Controls include the following: sex, age, age2, log monthly household income, own and parents’ upper secondary education or higher, household type (single person, couple without children, single parent, couple with children <16y, couple with children 16y+, couple with children <16y and 16y+, multigeneration, other combination [ref. group]), and German born. Nonparametric regressions are binary logit regressions predicting whether the option chosen involved uncertainty (that is, not Option A). Odds ratios are presented. The Embedded Image equation in the structural model is the coefficient of relative risk aversion for a CRRA utility function (see Appendix B in the Online Appendix, Equation B.1); the Embedded Image equation is the probability weighting factor in Equation B.3. Results in Column 3 exclude those who chose Option C in Scenario 4 (see Table 1). Standard errors are in parentheses and are clustered at the individual level. *p < 0.10, ***p < 0.01.