financial risk-taking, and for the alleviating effect of self-insurance devices …We study how background health risk affects financial risk-taking. We elicit financial risk-taking behavior of a … infections across time and space, we find that an increase in infections affecting background health risk translates into higher …

information. Respondents who learn of a higher personal exposure to unemployment risk during recessions increase their demand for … rational inattention that demand for information depends on its expected benefit. Moreover, the fact that perceived risk …

of savings, precautionary savings, loss aversion, and risk. We provide the relevant theory, followed by empirical tests …

A healthy financial system encourages the efficient allocation of capital and risk. The collapse of the house price … stochastic optimal control (SOC)/dynamic risk management is a much more effective approach to determine the optimal degree of … leverage, the optimum and excessive risk and the probability of a debt crisis. The theoretically founded early warning signals …

equity not only serves a dual purpose as a consumption good and as an asset, but also provides insurance to buffer various …

perception frictions. The model explains adaptive risk attitudes and probability weighting as in prospect theory and … the decision-maker’s understanding of the risk. The strategy does not distort choice in the limit as perception frictions … complexity of the decision problem, then risk attitudes reflect properties of the perception strategy even for vanishing …

Loss aversion, risk aversion, and the probability weighting function (PWF) are three central concepts in explaining … decisionmaking under risk. I examine interlinkages between these concepts in a model of decisionmaking that allows for loss averse … commonly observed shapes of PWF and to risk aversion. In particular, I establish a connection between loss aversion and both …