Shocks, Physical Characteristics, and Risk Taking Behaviour

Muhammad Ryan Sanjaya

Asian Journal of Empirical Research, 2013, vol. 3, issue 9, 1081-1105

Abstract: Many conventional economic analysis assumes that risk preference is taken as given and do not give much scrutiny on it. However, empirical studies show that risk preference is not random: shocks and predetermined characteristics can determine risk preference. This study tried to see if these potential determinants are together affect risk aversion in Indonesia using 2007 micro data. The author found that there is limited evidence that shocks and predetermined characteristics can affect risk preference. There is a preliminary indication that risk preference was not only driven by the individual’s wealth and demographic factors (that can be easily controlled), but also by the individual’s time preference.

Keywords: Risk aversion; Preference; Indonesia; Microeconometrics (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
https://archive.aessweb.com/index.php/5004/article/view/3586/5689 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:asi:ajoerj:v:3:y:2013:i:9:p:1081-1105:id:3586

Access Statistics for this article

More articles in Asian Journal of Empirical Research from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().