In Do Hwang

In Do Hwang
The Bank of Korea | BOK · Economic Research Institute

Doctor of Philosophy

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14
Publications
2,187
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36
Citations

Publications

Publications (14)
Preprint
Full-text available
Although an increasing number of studies demonstrate the importance of trust in economic growth, they only focus on interpersonal trust. This paper considers various types of trust including interpersonal trust (i.e., trust in people), institutional trust (e.g., trust in the fair administration of justice, or trust in the protection of property rig...
Preprint
Full-text available
This paper hypothesizes that loss aversion may decrease insurance demand and increase savings demand. Using individual-level data from the Health and Retirement Study, this paper presents empirical evidence consistent with the hypothesis. Loss averse individuals have a significantly lower ownership rate of term life insurance which is pure insuranc...
Article
We analyze the economic impact of central banks sensed by business executives in a sample of 61 countries from 1998 to 2016. Based on a survey conducted by the Institute for Management Development (IMD), we find compelling evidence that intensive central bank communication, as measured by the quantity of speeches, worsens the perceived impact. Duri...
Article
This paper empirically tests if prospect theory's loss aversion can explain an individual's real-world insurance take-up behavior. Using American Life Panel data, this paper shows that loss-averse individuals have a significantly lower ownership rate of private long-term care insurance and supplemental disability insurance than other sample populat...
Preprint
Full-text available
Does communication influence trust in the central bank? We examine this question using survey data covering 488,000 Eurozone citizens from 1999 to 2019. We find compelling evidence that more communication, as measured by the number of speeches made by representatives of the Eurosystem, negatively impacts citizens' trust in the ECB. This holds for s...
Preprint
Full-text available
This paper tests whether Korean households exhibit money illusion by surveying a representative sample of the adult population, 500 men and women living in the nation. Money illusion refers to the tendency to think and assess in terms of nominal monetary values, rather than real values controlling for inflation. When the survey questions from the e...
Poster
Full-text available
This study shows that loss aversion (the concavity of Kahneman & Tversky's value function) decreases insurance demand. Loss aversion decreases the demand because consumers with narrow framing regard insurance as a risky investment (insurance does not pay out anything if an accident does not occur). The negative effect of loss aversion suggests that...
Preprint
Full-text available
Framing effect is one of the behavioral biases, in which economic agents’ decisions are affected by the way the problems are presented. For example, a person may or may not buy annuities depending on whether annuities are described as a risky investment (i.e., risky investment frame) or as a valuable hedging instrument against longevity risk (i.e.,...
Preprint
Full-text available
This paper empirically tests if prospect theory’s loss-aversion and reference point dependence can explain individuals’ real-world insurance take-up behavior. This paper uses American Life Panel data and finds empirical evidence consistent with prospect theory: loss-averse individuals have a low ownership rate of long-term care insurance (LTCI), su...

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