We use household survey data to construct a direct measure of absolute risk aversion based on the maximum price a consumer is willing to pay to buy a risky asset. We relate this measure to a set of consumers' decisions that in theory should vary with attitude towards risk. We find that elicited...

The distributional effects of food pricing policy are controversial everywhere, particularly in developing countries. Indonesia is a good example, where rice is a net import and accounts simultaneously for a large share of consumers' budgets and a large share of total employment. For the poor,...