Measuring risk-taking and patience in financial decision-making
39 Pages Posted: 16 Dec 2014 Last revised: 12 Jul 2021
Date Written: July 8, 2021
We empirically compared the consistency among different kinds of measures for risk-taking and patience in a survey and an experiment. We evaluated how these variables relate to financial decisions, using a novel set of easy-to-apply survey questions as proxy. The main finding is that our results based on the novel survey questions describing financial behavior and on lifelike financial behavior in the laboratory are very similar. Therefore, relatively low-cost elicitation measures may be used to forecast decision-making, which, in turn, may be described by our novel set of survey questions.
Keywords: risk attitude; time preferences; decision-making; preferences
JEL Classification: C81, D12, D81, G11
Suggested Citation: Suggested Citation