Robust Inference in Risk Elicitation Tasks

Publikation: Working paper › Forskning

Standard

Robust Inference in Risk Elicitation Tasks. / Andersson, Ola; Holm, Hakan J.; Tyran, Jean-Robert; Wengström, Erik Roland.

2018.

Publikation: Working paper › Forskning

Harvard

Andersson, O, Holm, HJ, Tyran, J-R & Wengström, ER 2018 'Robust Inference in Risk Elicitation Tasks'. https://doi.org/10.2139/ssrn.3256637

APA

Andersson, O., Holm, H. J., Tyran, J-R., & Wengström, E. R. (2018). Robust Inference in Risk Elicitation Tasks. University of Copenhagen. Institute of Economics. Discussion Papers (Online) Nr. 18-09 https://doi.org/10.2139/ssrn.3256637

Vancouver

Andersson O, Holm HJ, Tyran J-R, Wengström ER. Robust Inference in Risk Elicitation Tasks. 2018 okt. 21. https://doi.org/10.2139/ssrn.3256637

Author

Andersson, Ola ; Holm, Hakan J. ; Tyran, Jean-Robert ; Wengström, Erik Roland. / Robust Inference in Risk Elicitation Tasks. 2018. (University of Copenhagen. Institute of Economics. Discussion Papers (Online); Nr. 18-09).

Bibtex

@techreport{c93131d9ba1e48c080e0736b4142ab86,
title = "Robust Inference in Risk Elicitation Tasks",
abstract = "Recent experimental evidence suggests that noisy behavior correlates strongly with cognitive ability. This puts previous studies that found a negative relation between cognitive ability and risk aversion into perspective and in particular raises the question of how to achieve robust inference in this domain. This paper shows that using structural estimation that models heterogeneity of noise in combination with a balanced design allows us to mitigate the bias problem. Our estimations show that cognitive ability is related to noisy behavior rather than risk preferences. We also find age and education to be strongly related to noise, but the personality characteristics obtained using the Big Five inventory, are less related to noise and more robustly correlated to risk preferences.",
keywords = "Risk Preference, Cognitive Ability, Experiment, Noise",
author = "Ola Andersson and Holm, {Hakan J.} and Jean-Robert Tyran and Wengstr{\"o}m, {Erik Roland}",
year = "2018",
month = oct,
day = "21",
doi = "10.2139/ssrn.3256637",
language = "English",
series = "University of Copenhagen. Institute of Economics. Discussion Papers (Online)",
number = "18-09",
type = "WorkingPaper",

}

RIS

TY - UNPB

T1 - Robust Inference in Risk Elicitation Tasks

AU - Andersson, Ola

AU - Holm, Hakan J.

AU - Tyran, Jean-Robert

AU - Wengström, Erik Roland

PY - 2018/10/21

Y1 - 2018/10/21

N2 - Recent experimental evidence suggests that noisy behavior correlates strongly with cognitive ability. This puts previous studies that found a negative relation between cognitive ability and risk aversion into perspective and in particular raises the question of how to achieve robust inference in this domain. This paper shows that using structural estimation that models heterogeneity of noise in combination with a balanced design allows us to mitigate the bias problem. Our estimations show that cognitive ability is related to noisy behavior rather than risk preferences. We also find age and education to be strongly related to noise, but the personality characteristics obtained using the Big Five inventory, are less related to noise and more robustly correlated to risk preferences.

AB - Recent experimental evidence suggests that noisy behavior correlates strongly with cognitive ability. This puts previous studies that found a negative relation between cognitive ability and risk aversion into perspective and in particular raises the question of how to achieve robust inference in this domain. This paper shows that using structural estimation that models heterogeneity of noise in combination with a balanced design allows us to mitigate the bias problem. Our estimations show that cognitive ability is related to noisy behavior rather than risk preferences. We also find age and education to be strongly related to noise, but the personality characteristics obtained using the Big Five inventory, are less related to noise and more robustly correlated to risk preferences.

KW - Risk Preference

KW - Cognitive Ability

KW - Experiment

KW - Noise

U2 - 10.2139/ssrn.3256637

DO - 10.2139/ssrn.3256637

M3 - Working paper

T3 - University of Copenhagen. Institute of Economics. Discussion Papers (Online)

BT - Robust Inference in Risk Elicitation Tasks

ER -

ID: 241647485