DETERMINANTS OF RISK TOLERANCE: EMPIRICAL EVIDENCE FROM KYRGYZSTAN

Authors : Kamalbek KARYMSHAKOV, Raziya ABDİEVA, Burulcha SULAİMANOVA

Pages : 54-61

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Publication Date : 2016-05-01

Article Type : Research Paper

Abstract :This study analyses the determinants of the risk tolerance in Kyrgyzstan, by using nationally representative “Life in Kyrgyzstan” survey for 2011. The results of multinomial probit models show that men more willing to take risk and that as the age increases individuals become risk-averse. In-creasing income and education level has a positive effect on the risk taking decision of the individual. The regional distribution of risk tolerance of individuals shows that individuals living in rural areas and in south region are more likely to be in risk-averse category. The first version of this paper was presented at the annual “Life in Kyrgyzstan” conference in Bishkek, Kyrgyzstan on October 1-2, 2015.
Keywords : risk tolerance, multinomial probit, Kyrgyzstan