Risk Aversion at the Country Level

14 Pages Posted: 19 Aug 2015 Last revised: 24 Jul 2019

Multiple version iconThere are 2 versions of this paper

Date Written: 2015

Abstract

This article estimates the coefficient of relative risk aversion for 75 countries using data on self-reports of personal well-being from the 2006 Gallup World Poll. The analysis suggests that the coefficient of relative risk aversion varies closely around 1, which corresponds to a logarithmic utility function. The authors conclude that their results support the use of the log utility function in numerical simulations of economic models.

JEL Classification: D80, I31, O57, D31

Suggested Citation

Gandelman, Nestor and Hernandez-Murillo, Ruben, Risk Aversion at the Country Level (2015). Available at SSRN: https://ssrn.com/abstract=2646134

Nestor Gandelman (Contact Author)

Universidad ORT Uruguay ( email )

Bulevar España 2633
Montevideo, 11.300
Uruguay

Ruben Hernandez-Murillo

KeyBank

Headquarters
127 Public Square 0403
Cleveland, OH 44114
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
1,145
Abstract Views
4,111
Rank
26,506
PlumX Metrics