Using German panel data, we assess the causal effect of job loss, and thus of an extensive income shock, on risk … attitude. In line with predictions of expected utility reasoning about absolute risk aversion, losing oneś job reduces the … perceives the threat of job loss and is of a transitory nature. The change in stated risk attitude matches observable job …

We decompose permanent earnings risk into contributions from hours and wage shocks. To distinguish between hours shocks …-cycle model of consumption and labor supply. Both permanent wage and hours shocks are important to explain earnings risk, but wage … shocks have greater relevance. Progressive taxation strongly attenuates cross-sectional earnings risk, its life …

Homeownership rates differ widely across European countries. We document that part of this variation is driven by … differences in the fraction of adults co-residing with their parents. Comparing Germany and Italy, we show that in contrast to … homeownership rates per household, homeownership rates per individual are very similar during the first part of the life cycle. To …

effect of severe financial losses on risk taking, contrasting with the traditional assumption that such preferences are …