Peer Effects in Risk Aversion

Ana Balsa, Nestor Gandelman and Nicolás González-Pampillón ()

No 1205, Documentos de Trabajo/Working Papers from Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo.

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)
Date: 2012
New Economics Papers: this item is included in nep-exp, nep-net, nep-upt and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www2.um.edu.uy/fcee_papers/2012/working_paper_um_cee_2012_05.pdf (application/pdf)

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)
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:mnt:wpaper:1205

Access Statistics for this paper

More papers in Documentos de Trabajo/Working Papers from Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo. Contact information at EDIRC.
Bibliographic data for series maintained by Mathias Ribeiro ().