Risk Aversion at the Country Level
FRB of St. Louis Working Paper No. 2014-005A
11 Pages Posted: 16 Feb 2014
There are 2 versions of this paper
Risk Aversion at the Country Level
Number of pages: 14
Posted: 19 Aug 2015
Last Revised: 24 Jul 2019
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1,145
Date Written: December 1, 2013
Abstract
In this paper we provide estimates of the coefficient of relative risk aversion for 80 countries using data on self-reports of personal well-being from the Gallup World Poll. For most countries we cannot reject the null hypothesis that the coefficient of relative risk aversion equals 1. We conclude that our result supports the use of the log utility function in numerical simulations.
Keywords: relative risk aversion; happiness; personal well-being
JEL Classification: D80, D31, I31, O57
Suggested Citation: Suggested Citation
Gandelman, Nestor and Hernandez-Murillo, Ruben, Risk Aversion at the Country Level (December 1, 2013). FRB of St. Louis Working Paper No. 2014-005A, Available at SSRN: https://ssrn.com/abstract=2396103 or http://dx.doi.org/10.2139/ssrn.2396103
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