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rationalize risk aversion over small stakes, on account of loss aversion and narrow framing. …
Persistent link: https://www.econbiz.de/10009651717
This paper experimentally studies the impact of uncertainty about bank and borrower fundamentals on loan repayment. We … about bank weakness. Borrowers are also less likely to repay in the presence of higher uncertainty regarding other …. Borrowers' financial health, regardless of disclosure rules. We show that uncertainty about fundamentals changes the risk …
Persistent link: https://www.econbiz.de/10009274333
and investment yields an uncertain return. Loss aversion is the most natural way of modeling the presence of a habit as it … explicitly models aversion to below-habit consumption. Existing approaches either neglect the possibility of below … the more general Kahneman-Tversky formulation of the value function. …
Persistent link: https://www.econbiz.de/10005101910
. Optimism is both driven by loss aversion and an endowment effect as overestimation of the house value is positively related to … the mortgage loan-to-value ratio and tenure of the owner-occupier. After several years of national declines in house … prices, the estimates in our sample have become more realistic but the glasses of homeowners remain rose-colored. Even groups …
Persistent link: https://www.econbiz.de/10010772596