On the measurement of risk aversion from experimental data

Attitudes towards risk are measured for households in Northern Zambia using an experimental gambling approach with real payoffs that at maximum were equal to 30% of average total annual income per capita. The results of the experiment show decreasing absolute risk aversion and increasing partial ris...

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Bibliographic Details
Published inApplied economics Vol. 36; no. 21; pp. 2443 - 2451
Main Authors Wik, Mette, Aragie Kebede, Tewodros, Bergland, Olvar, Holden, Stein T.
Format Journal Article
LanguageEnglish
Published London Taylor & Francis Group 10.12.2004
Taylor and Francis Journals
Taylor & Francis Ltd
SeriesApplied Economics
Subjects
Applied economics
Data analysis
Economic theory
Experiments
Households
Measurement
Risk
Risk aversion
Studies
Zambia
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Summary:Attitudes towards risk are measured for households in Northern Zambia using an experimental gambling approach with real payoffs that at maximum were equal to 30% of average total annual income per capita. The results of the experiment show decreasing absolute risk aversion and increasing partial risk aversion. Determinants of risk aversion are investigated using random effects interval regression model exploiting the panel data structure of the repeated experiments. Wealth indicator variables are found to be significant, and partial relative risk aversion decreases as wealth increases. Females are found to be more risk averse than males.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0003-6846
1466-4283
DOI:10.1080/0003684042000280580