Portfolio Choices and Risk Preferences in Village Economies
Publication Type:Working Papers
We use a model of optimal portfolio choice to measure heterogeneity in risk aversion among households in Thai villages. There is substantial heterogeneity in risk preferences, positively correlated in most villages with alternative estimates based on a full risk-sharing model.
JEL Codes:D12, D14, D53, D81, D91, G11, O16
Region:South and Central Asia