| Abstract: | This paper provides additional evidence on life-cycle patterns of relative risk aversion, using spline functions generated on Consumer Expenditure Survey data. Human capital is hypothesized to affect relative risk aversion; age has been used in previous work as a proxy for human capital. The objective of this study is to determine whether there is a life-cycle pattern that is independent of the effect of human capital. The results suggest an affirmative answer. Moreover, this independent life-cycle pattern is the opposite of that estimated in a previous study that used age as a proxy. |
