Date of Completion


Document Type

Honors College Thesis



Thesis Type

Honors College, College of Arts and Science Honors

First Advisor

Nathalie Mathieu-Bolh


Risk Aversion, Bosnia and Herzegovina, Economics, Global Financial Crisis, Consumption, Middle-Income


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

Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.