Temporal stability of estimates of risk aversion

Glenn W. Harrison, Eric J. Johnson, Melayne Morgan McInnes, E. Elisabet Rutström

Applied Financial Economics Letters · 2005 · 115 citations · 7 references

Concepts

Abstract

Estimates of risk aversion can be obtained from controlled laboratory experiments. The temporal stability of those preferences is assumed in many applications. This assumption is tested by eliciting risk aversion measures from subjects at two distinct times. Evidence consistent with the stability assumption is found.

References

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