Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/76660 
Year of Publication: 
2013
Series/Report no.: 
Economics Discussion Papers No. 2013-33
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
Many conventional economic analyses assume 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 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.
Subjects: 
risk aversion
preference
Indonesia
microeconometrics
JEL: 
O12
D81
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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