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Brexit - the United Kingdom leaving the European Union - continues to create an unpredictable social and political landscape. Uncertainty and perceptions are influential drivers when it comes to migration decisions, and yet, the literature's inference typically relies on individual-level data....
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We investigate whether the willingness to take investment risk is a sex-linked trait and link the results to the country’s gender equality regime. Our empirical analysis involves household data on financial asset holdings as well as on self-reported risk tolerance for Austria, Italy, the...
Persistent link: https://www.econbiz.de/10009720879
Uncertainty in election outcomes generates politically induced regulatory risk. For monopoly regulation, political parties' risk attitudes towards such risk depend on a fluctuation effect that hurts both parties and an output-expansion effect that benefits at least one party. Irrespective of the...
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Bayes' statistical rule remains the status quo for modeling belief updating in both normative and descriptive models of behavior under uncertainty. Recent research has questioned the use of Bayes' rule in descriptive models of behavior, presenting evidence that people overweight 'good news'...
Persistent link: https://www.econbiz.de/10011542204
We design and implement a novel experimental test of subjective expected utility theory and its generalizations. Our … function, but not with subjective utility theory. The theory is tested by gauging how subjects respond to price changes. A … majority of subjects respond to price changes in the direction predicted by the theory, but not to a degree that makes them …
Persistent link: https://www.econbiz.de/10012126236
Measuring economic uncertainty is crucial for understanding investment decisions by individuals and firms. Macroeconomists increasingly rely on survey data on subjective expectations. An innovative approach to measure aggregate uncertainty exploits the rounding patterns in individuals' responses...
Persistent link: https://www.econbiz.de/10012034114