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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: marcher who wrote (176630)	8/17/2021 3:49:02 PM
From: arun gera	Read Replies (1) \| Respond to of 217653

Risk tolerance study econstor.eu 7. Conclusion We have shown that risk attitudes are very different across countries. Globally, risk seeking appears to be just as frequent as risk aversion, which had been thought universal based on results obtained in the Western world. What is more, these differences are systematic. Only one economic indicator— GDP per capita—can explain 36% of the between-country variance in median risk attitudes, with poor countries being more risk tolerant than rich countries. The paradox arising from the opposite relationship between income and risk tolerance within country can be solved recurring to unified growth theory. In early Malthusian growth phases, high risk tolerance gains the upper hand in the population through the positive link between risk tolerance, income, and number of offspring. Once countries grow richer this relation is inverted, with rich parents substituting quality for quantity of children and poor parents increasing their number of children. This leads to an increase in risk aversion. Since risk tolerance induces entrepreneurship, it acts as a micro-economic transmission mechanism, so that the prevalence of risk tolerance in a society can predict growth levels. This account is broadly consistent with an institutional account of development.