Revalidating a survey instrument for measuring risk preferences

•We revalidate the instrument used for measuring risk preferences in the GPS.•The quantitative and qualitative items predict risk aversion in three samples.•The combination of both items is preferable to using only one item.•Considering quantitative and qualitative items separately can be informativ...

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Bibliographic Details
Published inEconomics letters Vol. 242; p. 111851
Main Authors Bittner, Anika, Haering, Alexander, Heinrich, Timo, Mayrhofer, Thomas
Format Journal Article
LanguageEnglish
Published Elsevier B.V 01.09.2024
Subjects
Experiment
Risk preferences
Survey validation
C91
Risk preferences
Survey validation
D81
C81
Experiment
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Summary:•We revalidate the instrument used for measuring risk preferences in the GPS.•The quantitative and qualitative items predict risk aversion in three samples.•The combination of both items is preferable to using only one item.•Considering quantitative and qualitative items separately can be informative. Survey instruments are often a cost-effective alternative to eliciting preferences via incentivized experiments. We revalidate a survey instrument used for measuring risk preferences in the influential Global Preferences Survey. We find that the instrument consisting of a quantitative and a qualitative item predicts risk aversion in a Chinese, an American and a German sample. For out-of-sample predictions, the combination of both items is preferable compared to using only one of the two items.
ISSN:0165-1765
DOI:10.1016/j.econlet.2024.111851