Template-Type: ReDIF-Paper 1.0
Title: Limited Self-Knowledge and Survey Response Behavior
Author-Name: Armin Falk
Author-Email: armin.falk@briq-institute.org
Author-Name: Thomas Neuber
Author-Email: thomas.neuber@uni-bonn.de
Author-Name: Philipp Strack
Author-Email: philipp.strack@yale.edu

Classification-JEL: C83, D83, C91, D91, J24
Keywords: survey research, rational inattention, lab experiment, non-cognitive skills, preferences

Abstract: We study response behavior in surveys and show how the explanatory power of selfreports
can be improved. First, we develop a choice model of survey response behavior
under the assumption that the respondent has imperfect self-knowledge about her
individual characteristics. In panel data, the model predicts that the variance in responses
for different characteristics increases in self-knowledge and that the variance
for a given characteristic over time is non-monotonic in self-knowledge. Importantly,
the ratio of these variances identifies an individual’s level of self-knowledge, i.e., the
latter can be inferred from observed response patterns. Second, we develop a consistent
and unbiased estimator for self-knowledge based on the model. Third, we
run an experiment to test the model’s main predictions in a context where the researcher
knows the true underlying characteristics. The data confirm the model’s
predictions as well as the estimator’s validity. Finally, we turn to a large panel
data set, estimate individual levels of self-knowledge, and show that accounting for
differences in self-knowledge significantly increases the explanatory power of regression
models. Using a median split in self-knowledge and regressing risky behaviors
on self-reported risk attitudes, we find that the R2 can be multiple times larger for
above- than below-median subjects. Similarly, gender differences in risk attitudes are
considerably larger when restricting samples to subjects with high self-knowledge.
These examples illustrate how using the estimator may improve inference from survey
data.

Note: 
Length: 58
Creation-Date: 2021-07
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp307
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2021_307