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

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 …

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 …

The paper reexamines the welfare economics of intergenerational risk. Risk and its resolution over time are modeled as … preferences to (i) disentangle aversion to intergenerational inequality from aversion to risk, (ii) exhibit a preference for early … resolution of risk, (iii) show different discounting formulas depending on the magnitude of risk and on the timing of its …

-form expressions of welfare loss from shocks and epistemological uncertainty identify the interaction of (intertemporal) risk attitude …

risk preferences. Here, we develop an analogous tool for choice under uncertainty – the ambiguity triangle – and show that …