Peer effects in risk aversion
Ana Balsa,
Nestor Gandelman and
Nicolás González
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Nicolás González: Centro de Estudios Monetarios y Financieros
No 84, Documentos de Investigación from Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales
Abstract:
Using data on Uruguayan adolescents, we estimate peer effects in risk attitudes. Relative risk aversion is elicited in an experimental setting. Identification is based on parents not being able to choose the class within the school of their choice. After controlling for school-grade fixed effect and addressing endogeneity due to simultaneity, we find a significant and quantitative large impact of peers on individuals risk aversion. An increase in one standard deviation of the group risk aversion produces an increase in 44-64% on an individual risk aversion. These findings enhance the importance of multiplicative effects related to risk behavior.
Keywords: risk aversion; peer effects; instrumental variables. (search for similar items in EconPapers)
JEL-codes: D1 I12 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2012-12
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Related works:
Journal Article: Peer Effects in Risk Aversion (2015) 
Working Paper: Peer Effects in Risk Aversion (2012) 
Working Paper: Peer Effects in Risk Aversion (2012) 
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Persistent link: https://EconPapers.repec.org/RePEc:avs:wpaper:84
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