Do actions speak louder than words? Comparing the effect of risk aversion on objective and self-reported mitigation measures

Patricia A. Champ, James Meldrum, Hannah Brenkert-Smith, Travis Warziniack, Christopher M. Barth, Lilia C. Falk and Jamie B. Gomez

Journal of Economic Behavior & Organization, 2020, vol. 169, issue C, 301-313

Abstract: In this article, we empirically examine whether the relationship between risk aversion and self-reported risk mitigating behavior is similar to the relationship between risk aversion and an objective measure of risk mitigating behavior. Despite higher levels of risk mitigation in the self-reported measure relative to the objective measure, we find risk aversion is similarly correlated with both measures of wildfire risk mitigation. These results provide some confidence in the use of self-reported behaviors in examinations of risk preferences and risky behaviors, even if the self-reports understate objective behavioral measures.

Keywords: Risk preferences; Risk aversion; Risk mitigation; Risky behavior; Wildfire; Self-reported behavior; Objective behavior measure (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:169:y:2020:i:c:p:301-313

DOI: 10.1016/j.jebo.2019.11.019

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