Revalidating a survey instrument for measuring risk preferences
Survey instruments are often a cost-effective alternative to eliciting preferences via incentivized experiments. We revalidate a survey instrument used for measuring risk preferences in the influential Global Preferences Survey. We find that the instrument consisting of a quantitative and a qualitative item predicts risk aversion in a Chinese, an American and a German sample. For out-of-sample predictions, the combination of both items is preferable compared to using only one of the two items.
Bittner, A., A. Haering, T. Heinrich and T. Mayrhofer (2024), Revalidating a survey instrument for measuring risk preferences. Economics Letters, 242, 111851