Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/142028
Authors: 
Menkhoff, Lukas
Sakha, Sahra
Year of Publication: 
2016
Series/Report no.: 
DIW Discussion Papers 1582
Abstract: 
We use a repeated incentivized risk experiment in rural Thailand to test determinants of changes in the level of individual risk aversion over time. We find that risk aversion significantly changes between 2008 and 2013 as a result of macro- andmicro-level shocks. Strong macroeconomic recovery following the 2007/08 financial crisis makes people more risk-seeking, whereas macroeconomic normalization thereafter increases risk aversion parameters. On the micro-level, we observe that negative economic and agricultural shocks increase risk aversion. Subjective perceptions of well-being and expectations also play a role but do not drive the macro-micro determinants of changes in individual risk aversion.
Subjects: 
risk aversion
lab-in-the-field experiment
shocks
socio-economic determinants
JEL: 
D01
D81
O12
Document Type: 
Working Paper

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