SHARE   Share on Twitter Share on Facebook Email

Risk Aversion at the Country Level

In this paper the authors estimate the coefficient of relative risk aversion for 75 countries using data on self-reports of personal well-being from the Gallup World Poll. Their analysis suggests that the coefficient of relative risk aversion varies closely around one, which corresponds to a logarithmic utility function. The authors conclude that their results support the use of the log utility function in numerical simulations.

Read Full Text (481K)


Recently Viewed Series


Subscribe to our newsletter for updates on published research, data news, and latest econ information.
Name:   Email:  
Twitter logo Google Plus logo Facebook logo YouTube logo LinkedIn logo