more attractive for social insurance if a larger part of risk is realized in the first period of the life-cycle. Our …

of years spent in retirement” are characterized by constant or decreasing absolute risk aversion. A similar result …

Higher-order risk effects play an important role in examining economic behavior under uncertainty. A precautionary … presence of an unavoidable risk affects one’s behavior towards a second risk. These two properties also play key roles in …

This paper considers how optimal education and tax policy depends on the risk properties of human capital. It is … demonstrated that a key feature of human capital investments is whether they increase or decrease wage risk. In a benchmark model …

risky labour-market outcomes, adverse selection, moral hazard and risk aversion. The model combines structured student loans … (redistribution). In separating optima, the talented types bear more risk than the less-talented ones; they arise only if the social …

explore the design of policy. The model highlights the critical roles played by (i) the relationship between behavioural risk … preferences, standard risk aversion and labour supply behaviour, (ii) the risk properties of education, and (iii) the degree of …

background or insured risks. (ii) Full risk coverage by the welfare state can only be optimal in a costless welfare state. (iii …

This paper investigates whether risk aversion and impatience are correlated with cognitive ability. We conduct … incentive compatible choice experiments measuring risk aversion, and impatience over an annual time horizon, for a … with greater risk aversion, and more pronounced impatience. These relationships are statistically and economically …