The Role of Risk Aversion in Predicting Individual Behaviours

Preprint OPEN
Guiso, Luigi; Paiella, Monica;
(2004)
  • Subject: heterogenous preferences; individual choice; risk aversion
    • jel: jel:D10 | jel:D80
    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
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