Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/146901
Authors: 
Menkhoff, Lukas
Sakha, Sahra
Year of Publication: 
2016
Series/Report no.: 
DIW Discussion Papers 1608
Abstract: 
We compare seven established risk elicitation methods and investigate how they robustly explain eleven kinds of risky behavior with 760 individuals. Risk measures are positively correlated; however, their performance in explaining behavior is heterogeneous and, therefore, difficult to assess ex ante. To close this knowledge gap, greater diversification across risk measures is helpful. We do, indeed, find that performance increases considerably if single-item risk measures are combined to form multiple-item risk measures. They tend to improve results the more single-item measures they contain and if these single-item risk measures have different framings. Interestingly, survey items perform as well as incentivized experimental items in explaining risky behavior.
Subjects: 
Risk
experiments
household survey
testing methods
contexts
JEL: 
D81
C93
O12
Document Type: 
Working Paper

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