Individuals' risk preferences are estimated and employed in a variety of settings, notably including choices in …' coefficients of relative risk aversion (CRRA's) in excess of one, and often significantly higher. However, it can be shown that …) anomaly involving individuals' risk-taking behavior in different market settings …

expected exchange rate depreciations (appreciations) for high (low) interest rate currencies, suggesting that disaster risk is … priced in currency markets. To study the price of disaster risk, we propose a simple structural model that includes both … Gaussian and disaster risk and can be estimated even in samples that do not contain disasters. Estimating the model over the …

. This paper explores the effect of such relief on incentives and the allocation of risk in a model with private insurance …

A significant source of risk arises from uncertainty concerning future government policy. Government action - - tax … preexisting rules. The effects of government relief - - compensation, grandfathering, phase-ins - - on ex ante incentives and risk …

Taxation and risk taking are examined in a general equilibrium model that incorporates uncertain government revenue in … riskless component of investment returns or to an ex ante wealth tax -- both of which absorb no private risk and yield certain … for behavior (private and total risk taking) and welfare are immediate. Moreover, these results are independent of the …