commensurate with their risk aversion; more risk-averse individuals pick lower-volatility stocks. The investors' portfolio …The preferred risk habitat hypothesis, introduced here, is that individual investors select stocks with volatilities … consistent with the predictions of the hypothesis: the portfolios contain highly similar stocks in terms of volatility, when …

We use household survey data to construct a direct measure of absolute risk aversion based on the maximum price a … background risk. We find that risk aversion is a decreasing function of endowment - thus rejecting CARA preferences – but that …' attributes are of little help in predicting their degree of risk aversion, which is characterized by massive unexplained …

In this paper, we study the determinants of the value of informal risk sharing groups. In particular, we look at the … if individuals can deviate form risk sharing agreements in coalitions or not. We test empirically several predictable … size of risk sharing groups can be rejected or that only imperfect risk sharing is obtained within the village because of …

A gravity model is used to assess the separate effects of exchange rate volatility and currency unions on international … exchange rate volatility, even after controlling for a host of features, including the endogenous nature of the exchange rate …

both create and share the risk associated with exchange rate volatility. In such circumstances, monetary policy can be used … of noise traders alters the composition of the market and generates excess exchange rate volatility, since noise traders … to lower exchange rate volatility without altering macroeconomic fundamentals. …

Theory suggests that people facing higher uninsurable background risk buy more insurance against other risks that are …

From the viewpoint of the independence axiom of expected utility theory, an interesting empirical dynamic choice … problem involves the presence of a 'global risk', that is, a chance of losing everything whichever safe or risky option is … variable is the particular decision stage at which a global risk is resolved: (i) before the investment decision; (ii) after …

. Exchange rate risk means domestic-currency bonds are imperfect substitutes for foreign-currency bonds. Expectations are … the former, no real risk premium exists, but increased monetary variance reduces current output, which nominal wage … rigidity makes responsive to aggregate demand. With the latter source of uncertainty a premium exists, but neither the risk …

This experimental study is concerned with the impact of the timing of the resolution of risk on people’s willingness to … inferred from decisions regarding hypothetical choice problems, we had participants put their own money at risk in a real … period under delayed resolution (which involved two days). Affective traits and risk attitudes were measured through a web …

are likely to modify students' risk-taking preferences in economically important ways. To test this, we designed a … expected monetary value than the alternative outcome with a certain payoff - and in which the sensitivity of observed risk … preferences for risk-taking are indeed sensitive to whether the girl attends a single-sex or coed school. Girls from single …