Browsing Research documents by Author "Andersen, Steffen"
Now showing items 1-11 of 11
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Evidence from Survival Rates in a Natural ExperimentAndersen, Steffen; Meisner Nielsen, Kasper (Frederiksberg, 2012)[More information][Less information]
Abstract: We use a natural experiment in Denmark to test the hypothesis that aspiring entrepreneurs face financial constraints because of low entrepreneurial quality. We identify 304 constrained entrepreneurs who start a business after receiving windfall wealth and examine the performance of these marginal entrepreneurs. We find that constrained entrepreneurs have significantly lower survival rates and lower profits when compared with a matched sample of unconstrained entrepreneurs. These results are consistent with the hypothesis that the marginal entrepreneur is of low quality. URI: http://hdl.handle.net/10398/8499 Files in this item: 1
Andersen_MeisnerNielsen.pdf (402.7Kb) -
Andersen, Steffen; Harrison, Glenn W.; Lau, Morten Igel; Rutström, Elisabeth E. (København, 2007)[More information][Less information]
Abstract: We make the case that psychologists should make wider use of structural econometric methods. These methods involve the development of maximum likelihood estimates of models, where the likelihood function is tailored to the structural model. In recent years these models have been developed for a wide range of behavioral models of choice under uncertainty. We explain the components of this methodology, and illustrate with applications to major models from psychology. The goal is to build, and traverse, a constructive bridge between the modeling insights of psychology and the statistical tools of economists. URI: http://hdl.handle.net/10398/7571 Files in this item: 1
artikel 16.pdf (1.442Mb) -
Andersen, Steffen; Harrison, Glenn W.; Lau, Morten Igel; Rutström, Elisabet E. (, 2009)[More information][Less information]
Abstract: We make the case that psychologists should make wider use of econometric methods for the estimation of structural models. These methods involve the development of maximum likelihood estimates of models, where the likelihood function is tailored to the structural model. In recent years these models have been developed for a wide range of behavioral models of choice under uncertainty. We explain the components of this methodology, and illustrate with applications to major models from psychology. The goal is to build, and traverse, a constructive bridge between the modeling insights of psychology and the statistical tools of economists. URI: http://hdl.handle.net/10398/7800 Files in this item: 1
wp2009-4.pdf (1.471Mb) -
Preliminary Experimental Evidence from Matrilineal and Patriarchal SocietiesBulte, Erwin; List, John A.; Gneezy, Uri; Andersen, Steffen (København, 2008)[More information][Less information]
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Andersen, Steffen; Harrison, Glenn W.; Lau, Morten Igel; Rutström, Elisabet E. (, 2009)[More information][Less information]
Abstract: The most popular models of decision making use a single criteria to evaluate projects or lotteries. However, decision makers may actually consider multiple criteria when evaluating projects. We consider a dual criteria model from psychology. This model integrates the familiar tradeoffs between risk and utility that economists traditionally assume, allowance for rank-dependent decision weights, and consideration of income thresholds. We examine the issues involved in full maximum likelihood estimation of the model using observed choice data. We propose a general method for integrating the multiple criteria, using the logic of mixture models, which we believe is attractive from a decision-theoretic and statistical perspective. The model is applied to observed choices from a major natural experiment involving intrinsically dynamic choices over highly skewed outcomes. The evidence points to the clear role that income thresholds play in such decision making, but does not rule out a role for tradeoffs between risk and utility or probability weighting. URI: http://hdl.handle.net/10398/7798 Files in this item: 1
wp2-2009.pdf (282.4Kb) -
Theory and ExperimentsAndersen, Steffen; Fountain, John; Harrison, Glenn W.; Rutström, E. Elisabet (, 2009)[More information][Less information]
Abstract: Subjective beliefs play a role in many economic decisions. There is a large theoretical literature on the elicitation of beliefs, and an equally large empirical literature. However, there is a gulf between the two. The theoretical literature proposes a range of procedures that can be used to recover beliefs, but stresses the need to make strong auxiliary assumptions or “calibrating adjustments” to elicited reports in order to recover the latent belief. With some notable exceptions, the empirical literature seems intent on either making those strong assumptions or ignoring the need for calibration. We make three contributions to bridge this gulf. First, we offer a general theoretical framework in which the belief elicitation task can be viewed as an exchange of state-dependent commodities between two traders. Second, we provide a specific elicitation procedure which has clear counterparts in field betting environments, and that is directly motivated by our theoretical framework. Finally, we illustrate how one can jointly estimate risk attitudes and subjective beliefs using structural maximum likelihood methods. This allows the observer to make inferences about the latent subjective belief, calibrating for virtually any well-specified model of choice under uncertainty. We demonstrate our procedures with an experiment in which we elicit subjective probabilities over three future events and one fact. URI: http://hdl.handle.net/10398/7799 Files in this item: 1
wp2009-3.pdf (2.043Mb) -
Andersen, Steffen; Fountain, John; Harrison, Glenn W.; Rutström, E. Elisabet (, 2009)[More information][Less information]
Abstract: It is intuitive that decision-makers might have attitudes towards uncertainty just as they might have attitudes towards risk. However, it is only recently that this intuitive notion has been formalized and axiomatically characterized. We estimate the extent of uncertainty aversion in a manner that is parsimonious and consistent with theory. We demonstrate that one can jointly estimate attitudes towards uncertainty, attitudes towards risk, and subjective probabilities in a rigorous manner. Our structural econometric model constructively demonstrates the theoretical claims that it is possible to define uncertainty aversion in an empirically tractable manner. Our results show that attitudes towards risk and uncertainty can be different, qualitatively and quantitatively, and that allowing for these differences can have significant effects on inferences about subjective probabilities. URI: http://hdl.handle.net/10398/7803 Files in this item: 1
wp2009-7.pdf (467.5Kb) -
Andersen, Steffen; Fountain, John; Harrison, Glenn W.; Rutström, E. Elisabet (, 2009)[More information][Less information]
Abstract: Subjective probabilities play a role in many economic decisions. There is a large theoretical literature on the elicitation of subjective probabilities, and an equally large empirical literature. However, there is a gulf between the two. The theoretical literature proposes a range of procedures that can be used to recover subjective probabilities, but stresses the need to make strong auxiliary assumptions or “calibrating adjustments” to elicited reports in order to recover the latent probability. With some notable exceptions, the empirical literature seems intent on either making those strong assumptions or ignoring the need for calibration. We illustrate how one can jointly estimate risk attitudes and subjective probabilities using structural maximum likelihood methods. This allows the observer to make inferences about the latent subjective probability, calibrating for virtually any well-specified model of choice under uncertainty. We demonstrate our procedures with experiments in which we elicit subjective probabilities. We calibrate the estimates of subjective beliefs assuming that choices are made consistently with expected utility theory or rank-dependent utility theory. Inferred subjective probabilities are significantly different when calibrated according to either theory. URI: http://hdl.handle.net/10398/7801 Files in this item: 1
wp2009-5.pdf (435.4Kb) -
Evidence from a Matrilineal and a Patriarchal SocietyAndersen, Steffen; Ertac, Seda; Gneezy, Uri; List, John A.; Maximiano, Sandra (Frederiksberg, 2010)[More information][Less information]
Abstract: Economists and other social scientists typically rely on gender differences in the family-career balance, discrimination, and ability to explain gender gaps in wages and in the prospect for advancement. A new explanation that has recently surfaced in the economics literature is that men are more competitively inclined than women, and having a successful career requires competitiveness. A natural question revolves around the underlying determinants of these documented competitive differences: are women simply born less competitive, or do they become so through the process of socialization? To shed light on this issue, we compare the competitiveness of children in matrilineal and patriarchal societies to show that the difference starts around puberty. Moreover, most of the changes during this period of life are within the patriarchal society, in which boys become more competitive with age while girls become less competitive. URI: http://hdl.handle.net/10398/8389 Files in this item: 1
Steffen_Andersen_2010.pdf (203.8Kb) -
Andersen, Steffen; Harrison, Glenn W.; Hole, Arne Risa; Rutström, E. Elisabet (, 2009)[More information][Less information]
Abstract: Experimental data exhibit considerable individual heterogeneity. We review the econometric methods employed to characterize that heterogeneity. We pay particular attention to the trade-off between collecting and allowing for observable characteristics, such as the familiar demographics, and the use of statistical methods to allow for unobserved individual heterogeneity. We demonstrate that these tools are complementary. URI: http://hdl.handle.net/10398/7802 Files in this item: 1
wp2009-6.pdf (420.1Kb) -
Andersen, Steffen; Ertaç, Seda; Gneezy, Uri; Hoffman, Moshe; List, John A. (Frederiksberg, 2011)[More information][Less information]
Now showing items 1-11 of 11