Stated and revealed heterogeneous risk preferences in educational choice

Frank Fossen and Daniela Glocker

European Economic Review, 2017, vol. 97, issue C, 1-25

Abstract: We develop a structural microeconometric model of educational choice with unobserved heterogeneity in risk aversion and estimate the model parameters using panel survey data. We assess the credibility of the model by linking the estimated structural parameters of risk aversion to the self-reported willingness to take risks, which is directly elicited in the survey. The risk aversion parameters revealed from educational choices decrease with the willingness to take risks stated by the survey respondents. This indicates consistency between stated and revealed risk preferences. We suggest that this method could be applied more generally to support or reject the joint validity of structural models and survey measures of preferences.

Keywords: Educational choice; Structural model; Stated preferences; Revealed preferences; Risk aversion (search for similar items in EconPapers)
JEL-codes: D81 I20 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0014292117300843
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Stated and Revealed Heterogeneous Risk Preferences in Educational Choice (2014)
Working Paper: Stated and Revealed Heterogeneous Risk Preferences in Educational Choice (2014)
Working Paper: Stated and Revealed Heterogeneous Risk Preferences in Educational Choice (2014)
Working Paper: Stated and revealed heterogeneous risk preferences in educational choice (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:97:y:2017:i:c:p:1-25

DOI: 10.1016/j.euroecorev.2017.03.016

Access Statistics for this article

European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().