Author

Balsa, Ana Inés ; Gandelman, Néstor ; González, Nicolás

Editor

Universidad de Montevideo, Facultad de Ciencias Empresariales y Economía, Departamento de Economía

Date

2012

Extensión

26 p.

Abstract

Using data onUruguayan 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 andaddressingendogeneity due to simultaneity, we finda significant and quantitative large impact of peers on individuals risk aversion. An increase in one standard deviation of the group risk aversion produces anincrease in 44-64% on an individual risk aversion. These findings enhance the importance of multiplicative effects related to risk behavior.

Palabras claves

Risk aversion Peer effects Instrumental variables

Tipo

Documento de trabajo

Derechos

Abierto

Versión

Publicada

En

Documentos de trabajo del Departamento de Economía; UM_CEE_2012_05

Collections

• Documentos de trabajo [65]