Cohn, Alain; Engelmann, Jan; Fehr, Ernst; Maréchal, … - In: American Economic Review 105 (2015) 2, pp. 860-85
Countercyclical risk aversion can explain major puzzles such as the high volatility of asset prices. Evidence for its existence is, however, scarce because of the host of factors that simultaneously change during financial cycles. We circumvent these problems by priming financial professionals...