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Experimentally Validated Survey Evidence on Individual Risk Attitudes in Rural Thailand

Author

Listed:
  • Bernd Hardeweg
  • Lukas Menkhoff
  • Hermann Waibel

Abstract

This study validates a survey-based measure of general risk attitude with an incentive compatible experiment with more than 900 participants in rural Thailand. The survey measure of self-assessed risk attitude provides a useful approximation of the experimentally derived risk attitude. This is further confirmed by adding various sociodemographic control variables taken from a representative household survey that are related to risk attitude in plausible ways. The survey measure also predicts individual behavior toward risk in other cases and even outperforms the experimental measure in this respect.

Suggested Citation

  • Bernd Hardeweg & Lukas Menkhoff & Hermann Waibel, 2013. "Experimentally Validated Survey Evidence on Individual Risk Attitudes in Rural Thailand," Economic Development and Cultural Change, University of Chicago Press, vol. 61(4), pages 859-888.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/670378
    DOI: 10.1086/670378
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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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