Individual risk attitudes: Measurement, determinants, and behavioral consequences

Journal of the European Economic Association

Volumn 9, Issue 3, 2011, Pages 522-550

  Dohmen, Thomas ^a   Falk, Armin ^b   Huffman, David ^c   Sunde, Uwe ^d   Schupp, Jürgen ^e,g   Wagner, Gert G ^f  

^a MAASTRICHT UNIVERSITY   (Netherlands)

^b UNIVERSITY OF BONN   (Germany)

^c SWARTHMORE COLLEGE   (United States)

^d UNIVERSITY OF ST GALLEN   (Switzerland)

^e DIW BERLIN   (Germany)

^f MAX PLANCK INSTITUTE FOR HUMAN DEVELOPMENT   (Germany)

^g FREIE UNIVERSITÄT BERLIN   (Germany)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 79955812678     PISSN: 15424766     EISSN: 15424774     Source Type: Journal    
DOI: 10.1111/j.1542-4774.2011.01015.x     Document Type: Article

References (48)

1. Barr, Abigail, and Truman Packard (2002). "Revealed Preference and Self-Insurance: Can We Learn from the Self-Employed in Chile?" World Bank Policy Research Working Paper No. 2754.
2. Barsky, Robert B., Thomas F. Juster, Miles S. Kimball, and Matthew D. Shapiro (1997). "Preference Parameters and Individual Heterogeneity: An Experimental Approach in the Health and Retirement Study. Quarterly Journal of Economics, 112, 537-579.
3. Bellemare, Charles, and Sabine Kröger (2007). "On Representative Social Capital. European Economic Review, 51, 181-202.
4. Binswanger, Hans P. (1980). "Attitudes Towards Risk: Experimental Measurement in Rural India. American Journal of Agricultural Economics, 62, 395-407.
5. Blackburn, McKinley, Glenn W. Harrison, and E. Elisabet Ruström (1994). "Statistical Bias Functions and Informative Hypothetical Surveys. American Journal of Agricultural Economics, 76, 1084-1088.
6. Blinder, Alan (1973). "Wage Discrimination: Reduced Form and Structural Estimates. Journal of Human Resources, 8, 436-455.
7. Bonin, Holger, Thomas Dohmen, Armin Falk, David Huffman, and Uwe Sunde (2007). "Cross-Sectional Earnings Risk and Occupational Sorting: The Role of Risk Attitudes. Labour Economics, 14, 926-937.
8. Bruhin, Adrian, Helga Fehr-Duda, and Thomas Epper (2007). "Risk and Rationality: Uncovering Heterogeneity in Probability Distortion." SOI Working Paper No. 0705.
9. Caliendo, Marco, Frank Fossen, and Alexander Kritikos (2009). "Risk Attitudes of Nascent Entrepreneurs: New Evidence from an Experimentally-Validated Survey. Small Business Economics, 32, 153-167.
10. Camerer, Colin F., and Robin M. Hogarth (1999). "The Effects of Financial Incentives in Experiments: A Review and Capital-Labor-Production Framework. Journal of Risk and Uncertainty, 19, 7-42.
11. Champ, Patricia A., and Richard C. Bishop (2001). "Donation Payment Mechanisms and Contingent Valuation: An Empirical Study of Hypothetical Bias. Environmental and Resource Economics, 19, 383-402.
12. Choi, Syingjoo, Raymond Fisman, Douglas Gale, and Shachar Kariv (2007). "Consistency and Heterogeneity of Individual Behavior Under Uncertainty. American Economic Review, 97(5), 1921-1938.
13. Cramer, J. S., Joop Hartog, Nicole Jonker, and C. Mirjam van Praag (2002). "Low Risk Aversion Encourages the Choice for Entrepreneurship: an Empirical Test of a Truism. Journal of Economic Behavior and Organization, 48, 29-36.
14. Diaz-Serrano, Luis, and Donal O'Neill (2004). "The Relationship Between Unemployment and Risk-Aversion." IZA Discussion Paper No. 1214.
15. Dohmen, Thomas, and Armin Falk (2006). "Performance Pay and Multidimensional Sorting: Productivity, Preferences and Gender." forthcoming in American Economic Review.
16. Dohmen, Thomas, Armin Falk, David Huffman, Uwe Sunde, Jürgen Schupp, and Gert G. Wagner (2005). "Individual Risk Attitudes: New Evidence from a Large, Representative, Experimentally-Validated Survey." IZA Discussion Paper No. 1730.
17. Donkers, Bas, Bertrand Melenberg, and Arthur Van Soest (2001). "Estimating Risk Attitudes Using Lotteries: A Large Sample Approach. Journal of Risk and Uncertainty, 22(2), 165-195.
18. Eckel, Catherine, and Philip Grossman (2008). "Men, Women and Risk Aversion: Experimental Evidence." In Handbook of Experimental Results, Vol. 1, pp. 1061-1073, edited by C. Plott and V. Smith, North-Holland, Amsterdam
19. Eckel, Catherine, Cathleen Johnson, and Claude Montmarquette (2005). "Saving Decisions of the Working Poor: Short- and Long-Term Horizons." In Research in Experimental Economics Volume 10: Field Experiments in Economics, edited by J. Carpenter, G. Harrison, and J. List, pp. 219-260. Elsevier, Oxford
20. Feinberg, Robert M. (1977). "Risk-Aversion, Risk and the Duration of Unemployment. Review of Economics and Statistics, 59, 264-271.
21. Flynn, James, Paul Slovic, and C.K. Mertz (1994). "Gender, Race, and Perception of Environmental Health Risks. Risk Analysis, 14, 1101-1108.
22. Grund, Christian, and Dirk Sliwka (2006). "Performance Pay and Risk Aversion." IZA Discussion Paper No. 2012.
23. Guiso, Luigi, Tullio Jappelli, and Luigi Pistaferri (2002). "An Empirical Analysis of Earnings and Employment Risk. Journal of Business and Economic Statistics, 20(2), 241-253.
24. Guiso, Luigi, and Monica Paiella (2001). "Risk-Aversion, Wealth, and Background Risk." CEPR Discussion Paper No. 2728.
25. Guiso, Luigi, and Monica Paiella (2005). "The Role of Risk Aversion in Predicting Individual Behavior." Bank of Italy Economic Working Paper No. 546.
26. Harrison, Glenn W., Morten Igel Lau, and E. Elisabet Ruström (2007). "Estimating Risk Attitudes in Denmark: A Field Experiment. Scandinavian Journal of Economics, 109, 341-368.
27. Holt, Charles A., and Susan K. Laury (2002). "Risk Aversion and Incentive Effects. American Economic Review, 92, 1644-1655.
28. Jaeger, David, Holger Bonin, Thomas Dohmen, Armin Falk, David Huffman, and Uwe Sunde (2010). "Direct Evidence on Risk Attitudes and Migration. Review of Economics and Statistics, 92, 684-689.
29. Laury, Susan K. (2006). "Pay One or Pay All." EXCEN Working Paper No. 2006-24, Georgia State University
30. Loewenstein, George F., Christopher K. Hsee, Elke U. Weber, and Ned Welch (2001). "Risk as Feelings. Psychological Bulletin, 127(2), 267-286.
31. Niederle, Muriel, and Lise Vesterlund (2007). "Do Women Shy Away From Competition? Do Men Compete Too Much? Quarterly Journal of Economics, 122, 1067-1101.
32. Oaxaca, Ron (1973). "Male-Female Wage Differentials in Urban Labor Markets. International Economic Review, 14, 693-709.
33. Persico, Nicola, Andrew Postlewaite, and Dan Silverman (2004). "The Effect of Adolescence Experience on Labor Market Outcomes: The Case of Height. Journal of Political Economy, 112, 1019-1053.
34. Saris, Willem E. (2003). "Multitrait-Multimethod Studies." In Cross-Cultural Survey Methods, edited by J. A. Harkness Hoboken, NJ, pp. 265-274.
35. Saris, Willem E., and A. van Meurs (1990). "Memory Effects in MTMM Studies." In Evaluation of Measurement Instruments by Meta-Analysis of Multitrait Multimethod Studies, edited by W. E. Saris, and A. van Meurs, pp. 134-146. North-Holland, Amsterdam
36. Schäfer, Andrea, and Jürgen Schupp (2006). "Zur Erfassung der Vermögensbestände im Sozio-oekonomischen Panel (SOEP) im Jahr 2002. DIW Data Documentation, 11.
37. Schubert, Renate, Martin Brown, Matthias Gysler, and Hans Brachinger (1999). "Financial Decision-Making: Are Women Really More Risk-Averse? American Economic Review Papers and Proceedings, 89, 381-385.
38. Schupp, Jürgen, and Gert G. Wagner (2002). "Maintenance of and Innovation in Long-Term Panel Studies. The Case of the German Socio-Economic Panel (GSOEP). Allgemeines Statistisches Archiv, 86, 163-175.
39. Schupp, Jürgen, and Gert G. Wagner (2007). "New Sources for Theory Based Socio-Economic Behavioral Analysis: The 2002-2006 Pre-Tests for the German Socio-Economic Panel Study. DIW Data Documentation.
40. Silverman, Jane M., and Donald S. Kumka (1987). "Gender Differences in Attitudes Towards Nuclear War and Disarmament. Sex Roles, 16, 189-203.
41. Slovic, Paul (1972a). "Psychological Study of Human Judgment: Implications for Investment Decision Making. Journal of Finance, 27, 777-799.
42. Slovic, Paul (1972b). "Information Procession, Situation Specificity, and the Generality of Risk-Taking Behavior. Journal of Personality and Social Psychology, 22, 128-134.
43. Slovic, Paul (1999). "Trust, Emotion, Sex, Politics, and Science: Surveying the Risk-Assessment Battlefield. Risk Analysis, 19, 689-701.
44. Spigner, Clarence, Wesley Hawkins, and Wendy Lorens (1993). "Gender Differences in Perception of Risk Associated with Alcohol and Drug Use Among College Students. Women and Health, 20, 87-97.
45. Stallen, Pieter Jan M., and Arend Thomas (1988). "Public Concern About Industrial Hazards. Risk Analysis, 8, 237-245.
46. Thompson, Steven K. (2006). "Targeted Random Walk Designs. Survey Methodology, 32, 11-24.
47. Wagner, Gert G., Richard V. Burkhauser, and Friederike Behringer (1993). "The English Language Public Use File of the German Socio-Economic Panel. The Journal of Human Resources, 28, 429-433.
48. Weber, Elke U., Ann-René Blais, and Nancy E. Betz (2002). "A Domain-Specific Risk-Attitude Scale: Measuring Risk Perceptions and Risk Behaviors. Journal of Behavioral Decision Making, 15, 263-290.