Risk Aversion at the Country Level
14 Pages Posted: 19 Aug 2015 Last revised: 24 Jul 2019
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Risk Aversion at the Country Level
Number of pages: 14
Posted: 19 Aug 2015
Last Revised: 24 Jul 2019
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Risk Aversion at the Country Level
FRB of St. Louis Working Paper No. 2014-005A
Number of pages: 11
Posted: 16 Feb 2014
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226
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: Suggested Citation
Gandelman, Nestor and Hernandez-Murillo, Ruben, Risk Aversion at the Country Level (2015). Available at SSRN: https://ssrn.com/abstract=2646134
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