Risk Aversion at the Country Level
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.
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Provider: Federal Reserve Bank of St. Louis
Part of Series: Working Papers
Publication Date: 2014-02-01