Depression Babies: Do Macroeconomic Experiences Affect Risk Taking? What is the issue the authors are dealing with and why is it important? The authors of the given research are interested in the investigation of the impact the negative experience might have on persons behavior and his/her desire and willingness to accept financial risks. The fact is that the negative experience might result in the significant deterioration of a persons attitude towards financial issues. That is why the authors tend to determine the scale of the given problem. To be more convincing, they use the data related to the Great Depression as this period of time could be characterized by the great losses and numerous problems resulting from the failures of some investments. The researchers take Survey of Consumer Finances from 1960-2007 and try to analyze the behavior of people who suffered the negative aftermath of the Great Depression (Malmendier and Nagel 374). The given research has the great practical use. The fact is that the current situation could also be characterized by the financial crisis. The ability of people to pass through the period of change and obtain some new skills is crucial for the further evolution of the financial sector. That is why the given investigation is very important and should be given great attention. Why do macroeconomists make the assumption that risk preferences are constant across time? Researching the problem, Malmendier and Nagel agree with the assumption that risk preferences remain constant across time (374). This statement is based on the data obtained from the times of Great Depression. Macroeconomists tend to prove the idea that peoples preferences related to the given aspect do not change in the course of time. If to analyze this statement, it is possible to understand the idea which conditions the given assumption. The fact is that the instinct for self-preservation is one of the basic components of the human nature. Individuals try to act in the way which will guarantee the better outcomes and help to avoid some accidents. Nevertheless, the standard approach and model assume that individuals will incorporate and analyze the existing historical data to create the most efficient pattern that will help them to survive and meet new challenges. In other words, a person will use the same methods his/her predecessors used to avoid great losses and guarantee survival especially if the given approach was successful. That is why the given assumption becomes understandable. What is the evidence that suggests that risk preferences evolve at the individual level? However, there is also the idea opposite to the above-mentioned one. It states that risk preferences do change over time, and this process could be considered a normal response to the evolution of society, market and world. Guiso, Sapienza, Zingales are also sure that the given tendency exists and could be taken as the main trend of the modern society (4). They conduct a study to prove this assumption and conclude that the peculiarities of the modern market and the evolution of peoples mentality result in the appearance of the practice. Nowadays, people tend not just to use already existing app