Date of Completion
2024
Document Type
Honors College Thesis
Department
Economics
Thesis Type
Honors College, College of Arts and Science Honors
First Advisor
Nathalie Mathieu-Bolh
Keywords
Risk Aversion, Bosnia and Herzegovina, Economics, Global Financial Crisis, Consumption, Middle-Income
Abstract
The 2008 Global Financial Crisis was particularly difficult for Bosnia and Herzegovina, an upper-middle-income country. This paper investigates the effects of changes in risk aversion on consumption saving behavior in the context of the Global Financial Crisis. I use the Ramsey-Cass-Koopmans (RCK) growth model (Cass 1965; Koopmans 1963) and apply it to Bosnian economic data. I estimate the effects of a change in risk aversion via numerical simulations to derive quantitative results concerning both the short- and long-term. I find that output, consumption, and investment decreased by as much as 2.53%, 2.41%, 7.40% respectively in the long term.
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
Recommended Citation
Skoric, Tin, "The Effect of the 2008 Financial Crisis on Bosnian Households" (2024). UVM Patrick Leahy Honors College Senior Theses. 663.
https://scholarworks.uvm.edu/hcoltheses/663