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On the advantages and disadvantages of subjective measures

Author

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  • Jahedi, Salar
  • Méndez, Fabio

Abstract

This paper utilizes data from a laboratory experiment in order to examine the advantages and disadvantages of subjective measures. Our results indicate good and bad news: subjective measures correlate highly with the variables they are designed to capture but they also systematically suffer from many economic and cognitive biases. Importantly, we find that subjective measures are often complements to objective measures, and that they may actually be preferable in use to objective measures in those cases where the two disagree with each another.

Suggested Citation

  • Jahedi, Salar & Méndez, Fabio, 2014. "On the advantages and disadvantages of subjective measures," Journal of Economic Behavior & Organization, Elsevier, vol. 98(C), pages 97-114.
    • Handle: RePEc:eee:jeborg:v:98:y:2014:i:c:p:97-114
    DOI: 10.1016/j.jebo.2013.12.016
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    References listed on IDEAS

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    More about this item

    Keywords

    Subjective measures; Perceptions; Corruption; Happiness; Biases; Experiments;
    All these keywords.

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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