degree of pessimism of the representative agent is the mean of the individual ones weighted by their index of absolute risk …

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 …

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

The standard model of intertemporal choice assumes risk neutrality toward the length of life: due to additivity, agents … Panel (ALP), this paper provides empirical evidence on possible deviation from risk neutrality with respect to longevity in … the U.S. population. The questions we ask allow to find the distribution as well as to quantify the degree of risk …

their individual risk aversion. They choose between a fundamentalist and a trend-following rule to form expectations about … the price of a risky asset. Given their risk aversion, agents make a deterministic trade-off between mean and variance … both in choosing a forecasting heuristic and determining the number of risky assets to buy. Heterogeneous risk preferences …

, they are stable over time and largely stable across domains. We summarize heterogeneity in these three dimensions using a …

We define a class of risk-taking-neutral (RTN) background risks. These background risks have the property that they … will not alter decisions made with respect to another risk, for individuals with HARA utility. If we wish to compare a … decision made with and without some exogenous background risk, it is often easier to compare the decision made to one made with …

observation refers to a choice between a safe option and a binary risk of winning or losing the game. Our setting offers a real … theory. The effect of skewness is most pronounced among experienced and unsuccessful players but remains significant in all …