DETERMINANTS OF RISK TOLERANCE: EMPIRICAL EVIDENCE FROM KYRGYZSTAN

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

Abstract

Данное исследование анализирует факторы, влияющие на толерантность населения к риску в Кыргызстане. Для эконометрических расчетов были использованы данные опроса «Жизнь в Кыргызстане» за 2011 г. Результаты мультиномиальных пробит-моделей показы-вают, что мужчины готовы взять на себя риск в большей степени, чем женщины, и что с уве-личением возраста люди становятся менее склонны к риску. Уровень дохода и образования оказывает положительное влияние на склонность к риску. Региональное распределение толе-рантности к риску показывает, что люди, живущие в сельской местности и в южном регионе страны, менее склонны к риску.

Первая версия этой статьи была представлена на ежегодной конференции «Жизнь в Кыргызстане» в Бишкеке 1-2 октября 2015 года.

Keywords

• толерантность к риску,мультиномиальная пробит-модель,Кыргызстан

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