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

PSC In The News

RSS Feed icon

Bound, Geronimus, et al. find estimates of decreasing longevity among low-SES whites sensitive to measures and interpretations

Thompson casts doubt on the rehabilitative intentions of prison labor

Inglehart says European social democracy is a victim of its own success

More News

Highlights

U-M participants at PAA Annual Meeting, April 27-29

Heather Ann Thompson wins Bancroft Prize for History for 'Blood in the Water'

Michigan ranks in USN&WR top-10 grad schools for sociology, public health, labor economics, social policy, social psychology

Paula Lantz to speak at Women in Health Leadership Summit, March 24, 2:30-5:30 Michigan League

More Highlights

Next Brown Bag

Mon, April 10, 2017, noon:
Elizabeth Bruch

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