@article {272056,
	title = {The Psychometric and Empirical Properties of Measures of Risk Preferences},
	journal = {Journal of Risk and Uncertainty.},
	volume = {54},
	number = {3},
	year = {2017},
	pages = {203-237},
	abstract = {
	
		
			
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				We examine the psychometric and empirical properties of some commonly\&nbsp;used survey-based measures of risk preferences in a population-based sample of\&nbsp;11,000 twins. Using a model that provides a general framework for making inferences\&nbsp;about the component of measured risk attitudes that is not due to measurement\&nbsp;error, we show that measurement-error adjustment leads to substantially larger estimates\&nbsp;of the predictive power of risk attitudes, of the size of the gender gap, and of the\&nbsp;magnitude of the sibling correlation. Risk attitudes are predictive of investment decisions,\&nbsp;entrepreneurship, and drinking and smoking behaviors; are robustly associated\&nbsp;with cognitive ability and personality; and our estimates are often larger than those\&nbsp;in the literature. Our results highlight the importance of adjusting for measurement\&nbsp;error across a wide range of empirical settings.
			

			
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},
	url = {https://link.springer.com/article/10.1007/s11166-017-9261-3?wt_mc=Internal.Event.1.SEM.ArticleAuthorAssignedToIssue},
	author = {Jonathan P. Beauchamp and David Cesarini and Magnus Johannesson}
}
