The Role of Risk Aversion in Predicting Individual Behaviour

Preprint OPEN
Monica Paiella; Luigi Guiso;
(2004)
  • 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 ri... View more
  • References (31)
    31 references, page 1 of 4

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