Measuring individual risk attitudes when preferences are imprecise
Loomes, Graham and Pogrebna, Ganna. (2014) Measuring individual risk attitudes when preferences are imprecise. The Economic Journal, Volume 124 (Number 576). pp. 569-593. ISSN 0013-0133Full text not available from this repository.
Official URL: http://dx.doi.org/10.1111/ecoj.12143
There is widespread interest in measuring risk attitudes and incorporating such measures into broader econometric analyses. We consider three elicitation procedures currently in use. We find considerable variability within – and even more, between – the results they produce. We suggest that this reflects the way that different instruments interact with imprecise underlying preferences. The short-run implication is that such procedures need to be used with caution and are likely to be highly context-specific. The longer run implication is that adding ‘white noise’ to deterministic models is inadequate: we need to develop models that allow for imprecision and procedural variation.
|Item Type:||Journal Article|
|Divisions:||Faculty of Social Sciences > Economics
Faculty of Science > WMG (Formerly the Warwick Manufacturing Group)
|Journal or Publication Title:||The Economic Journal|
|Publisher:||Wiley-Blackwell Publishing Ltd.|
|Official Date:||23 May 2014|
|Page Range:||pp. 569-593|
|Access rights to Published version:||Restricted or Subscription Access|
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