Determinants of the Relative Risk Aversion coefficient in Iranian Urban Households Case Study: Life Insurance

Please enable javascript in your browser.

Khanmirzaee, Farhad | 2012

550 Viewed

Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 43384 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Fatemi Ardestani, Farshad
Abstract:
This research is devoted to clarify the determinants of the revealed behavior of Iranian urban households toward risk attitude in the life insurance market. Based on the cross section data of Iranian household income and expenditure statistics (HIES), the life insurance data of Iran Insurance company, and the fertility rate reported by National Organization for civil registration, the Arrow-Pratt Index for relative risk aversion is estimated. According to the literature, the income, asset and job status are considered as economic variables, while the sex of family head, the number of children, the age of family head and the marriage status are regarded as demographic and social variables. Among these variables, only the age, the level of asset, the income, the job status, and the marriage status have significant realtion with the risk aversion index. The increasing relative risk aversion hypothesis (IRRA) by income is not accepted
Keywords:
Life Insurance ; Iranian Urban Households ; Household Relative Risk Averasion ; Socio-Economic Condition ; Increasing Relative Risk Aversion (IRRA)Hypothesis

No TOC