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Risk Aversion at the Country Level

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.
Year of publication:
2014-02-01
Authors: Hernandez-Murillo, Ruben ; Gandelman, Nestor
Institutions: Federal Reserve Bank of St. Louis
Extent:
application/pdf
Series:
Type of publication: Book / Working Paper
Notes:
The text is part of a series Working Papers Number 2014-5 11 pages
Classification: D31 - Personal Income, Wealth and Their Distributions ; D80 - Information and Uncertainty. General ; I31 - General Welfare; Basic Needs; Quality of Life ; O57 - Comparative Studies of Countries
Source:
Persistent link: https://www.econbiz.de/10010784191
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