framework to solve jointly for investment and information choices, with a variety of preferences and information cost functions …

technology. We use a field experiment with two stages of randomization to generate exogenous variation in the payoffs associated …

This essay reviews the family of models that seek to provide aggregate risk based explanations for the empirically …

risk associated with holding investible securities. Consistent with this fact: 1) the average effect of the reduction in … systematic risk is 3.4 percentage points, or roughly one third of the total effect; and 2) variation in the firm …-specific response is directly proportional to the firm-specific change in systematic risk. The statistical significance of this …

Typical value-at-risk (VAR) calculations involve the probabilities of extreme dollar losses, based on the statistical … VAR values that are adjusted for risk aversion, time preferences, and other variations in economic valuation. In the … context of a representative agent equilibrium model, we construct an estimator of the risk-aversion coefficient that is …

risk reduces the optimal investment in a risky security with and independent return. Similar results are established for … the effect of broad class of increases in one risk on the desirability of (or optimal investment in) a second, independent …This paper introduces the concept of standard risk aversion. A von Neumann-Morgenstern utility function has standard …

-- do not confuse behavior towards risk with attitudes towards intertemporal substitution, the true beta of an asset is, in … general, an average of its consumption and market betas. We show that the two parameters measuring risk aversion and … plan), while a unit coefficient of relative risk aversion gives rise to myopia in portfolio allocation (the future does not …

household's attitudes toward risk, as shown in Swanson (2012). In this paper, I analyze how frictional labor markets affect that … analysis. Household risk aversion (as measured by willingness to pay to avoid a wealth shock) is higher: 1) in countries with … in Europe are large enough to play a substantial contributing role to risk aversion in those countries. Nevertheless …

This article develops two points. First, insurance against the risk of legal change is largely unavailable, primarily …