Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Sastry's 10-year study of New Orleans Katrina evacuees shows demographic differences between returning and nonreturning

Stafford says less educated, smaller investors more likely to sell off stock and lock in losses during market downturn

Chen says job fit, job happiness can be achieved over time

Highlights

Deirdre Bloome wins ASA award for work on racial inequality and intergenerational transmission

Bob Willis awarded 2015 Jacob Mincer Award for Lifetime Contributions to the Field of Labor Economics

David Lam is new director of Institute for Social Research

Elizabeth Bruch wins Robert Merton Prize for paper in analytic sociology

Next Brown Bag

Monday, Oct 12
Joe Grengs, Policy & Planning for Social Equity in Transportation

Miles Kimball photo

Imputing Risk Tolerance from Survey Responses

Publication Abstract

Kimball, Miles, Claudia R. Sahm, and Matthew D. Shapiro. 2008. "Imputing Risk Tolerance from Survey Responses." Journal of the American Statistical Association, 103(483): 1028-1038.

Economic theory assigns a central role to risk preferences. This article develops a measure of relative risk tolerance using responses to hypothetical income gambles in the Health and Retirement Study. In contrast to most survey measures that produce an ordinal metric, this article shows how to construct a cardinal proxy for the risk tolerance of each survey respondent. The article also shows how to account for measurement error in estimating this proxy and how to obtain consistent regression estimates despite the measurement error. The risk tolerance proxy is shown to explain differences in asset allocation across households.

DOI:10.1198/016214508000000139 (Full Text)

PMCID: PMC2856097. (Pub Med Central)

Country of focus: United States of America.

Browse | Search : All Pubs | Next