Federal Reserve Bank of St. Louis
Risk Aversion at the Country Level
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.
Cite this item
Nestor Gandelman & Ruben Hernandez-Murillo, "Risk Aversion at the Country Level"
, Federal Reserve Bank of St. Louis, Review, volume 97, issue 1, pages 53-66, 2015.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
- I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
- O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
This item with handle RePEc:fip:fedlrv:00036
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