THE ROLE OF RISK AVERSION IN PREDICTING INDIVIDUAL BEHAVIOR

Part of book or chapter of book, Preprint OPEN
Luigi Guiso; Monica Paiella;
(2005)
  • Publisher: MIT Press
  • Subject: risk aversion, heterogeneous preferences, choice under risk, entrepreneurship, self selection.
    • jel: jel:D1 | jel:D8
    mesheuropmc: health care economics and organizations

We use household survey data to construct a direct measure of absolute risk aversion based on the maximum price a consumer is willing to pay to buy a risky asset. We relate this measure to a set of consumers� decisions that in theory should vary with attitude towards ... View more
  • References (37)
    37 references, page 1 of 4

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