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rcbelief

An R package for recovering and estimating subjective beliefs from Quadratic Scoring Rule (QSR) belief elicitation tasks, accounting for risk preferences. Implements the theory of Harrison & Ulm (2016) and the behavioral estimation approach of Andersen, Fountain, Harrison, and Rutström.

Installation

devtools::install_github("bamonroe/rcbelief")

Depends on rcest and mdists.

Features

  1. Belief recovery — Recover subjective beliefs from QSR reports given estimated risk preferences (rec_bel)
  2. Interval regression — Jointly estimate recovered beliefs and risk preferences through an interval regression approach
  3. Behavioral estimation — Jointly estimate subjective beliefs and risk preferences using a structural behavioral model

Supported Models

Utility Functions

  • CRRA: x^(1-r) / (1-r)
  • Power: x^r

Probability Weighting Functions

  • EUT (expected utility, no weighting)
  • Power (Quiggin 1982)
  • Inverse-S
  • Two-parameter Prelec (1998)

License

MIT

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Recover and estimate subjective beliefs from QSR tasks accounting for risk preferences

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