Probabilistic survey questions and incorrect answers: Retirement income replacement rates

Peter van Santen (), Rob Alessie and Adriaan Kalwij

Journal of Economic Behavior & Organization, 2012, vol. 82, issue 1, 267-280

Abstract: We study responses to subjective retirement income replacement rate expectations questions in a survey of Dutch employees. One out of three respondents is unable to provide probabilities satisfying the requirements of a cumulative distribution function. We show that using probabilistic survey questions yields an endogenous sample selection when these individuals are removed from the sample, biasing the results toward more pessimistic expectations and excess uncertainty in the replacement rate. These biases are most prevalent for less-educated individuals.

Keywords: Subjective expectations; Selection bias; Retirement income uncertainty (search for similar items in EconPapers)
JEL-codes: D31 D91 H55 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167268112000297
Full text for ScienceDirect subscribers only

Related works:
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:jeborg:v:82:y:2012:i:1:p:267-280

DOI: 10.1016/j.jebo.2012.02.007

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().