We show how optimal saving in a two-period model is affected when prudence and risk aversion of the underlying utility … and the pure time discount rate, there is distributional neutrality between the two periods. Otherwise, changes of risk …

and the pure time discount rate, there is distributional neutrality between the two periods. Otherwise, changes of risk …

We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates 'standard …' risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions … important role in explaining the aversion to risk manifested in deductible choices. This finding is robust to allowing for …

In this study we experimentally investigate whether solidarity, which is a crucial base for informal insurance … arrangements in developing countries, is sensitive to the extent to which individuals can influence their risk exposure. With slum … of subjects reduces willingness to give when risk exposure is a choice. Responses are limited to donors in the risky …

-probability extreme events on environmental policy in a continuous-time real options model with “tail risk”. In a nutshell, our results … indicate the importance of tail risk and call for foresighted pre-emptive climate policies …