Mapping risk aversion in Norway using hypothetical income gambles

@inproceedings{AARBU2009MappingRA,
title={Mapping risk aversion in Norway using hypothetical income gambles},
author={KARL OVE AARBU and Fred Schroyen},
year={2009}
}

This is the first study that explores the heterogeneity of risk preferences among the Norwegian population. We measure risk aversion as the complement of the maximal relative downside income risk a person is willing to bear with 50 percent chance in return for a doubling of their income with 50 percent chance. The higher this fraction is, the more risk averse is the respondent. Observing for each respondent the range to which their fraction belongs, we use an ordered probit model to estimate… CONTINUE READING