Will the better-than-average effect help put us on the path to economic recovery
Melbourne Institute Research Insight No. 15/20
Date: June 2020
Author(s):
Abstract
People who believe they will not be personally affected by COVID-19 as much as the rest of the economy may be the ones who kick-start Australia's economic revival. Using data from the Melbourne Institute 'Taking the Pulse of the Nation' survey, this Research Insight explores how gender and employment status affect their expectations regarding their economic wellbeing. The author, Professor John P. de New, explains how the 'better-than-average effect' - the tendency to overestimate one’s chances of good fortune and to underestimate one’s risk for misfortune - can explain these differences in expectations.