Skip to main content

Portfolio Choices and Risk Preferences in Village Economies

Working Paper 706 | Published June 3, 2013

Download PDF

Authors

Default people image

Robert Townsend Economics Professor, University of Chicago

Default people image

Pierre-Andre Chiappori

Default people image

Krislert Samphantharak

Portfolio Choices and Risk Preferences in Village Economies

Abstract

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.