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Eliciting probabilistic expectations with visual aids in developing countries: how sensitive are answers to variations in elicitation design?

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  • Adeline Delavande
  • Xavier Giné
  • David McKenzie

Abstract

Eliciting subjective probability distributions in developing countries is often based on visual aids such as beans to represent probabilities and intervals on a sheet of paper to represent the support. The authors conducted an experiment in India that tested the sensitivity of elicited expectations to variations in three facets of the elicitation methodology: the number of beans, the design of the support (pre-determined or self-anchored), and the ordering of questions. The results show remarkable robustness to variations in elicitation design. Nevertheless, the added precision offered by using more beans and a larger number of intervals with a predetermined support improves accuracy.
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Suggested Citation

  • Adeline Delavande & Xavier Giné & David McKenzie, 2011. "Eliciting probabilistic expectations with visual aids in developing countries: how sensitive are answers to variations in elicitation design?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(3), pages 479-497, April.
    • Handle: RePEc:wly:japmet:v:26:y:2011:i:3:p:479-497
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