This paper experimentally investigates investment behavior.We find that global risk – i.e. risk independent of an agent …’sinvestment decision (like political risk) – substantiallydecreases investment. Also effort to obtain the capital usedfor investment … orientated theories of decision makingunder risk (e.g. prospect theory or regret theory). We discussthe economic relevance of the …

How does risk or uncertainty in the productivity of research affect the growth rate of the economy? To answer this …&D from profit-maximizing firms. The uncertainty arises from the productivity of these investments in R&D. The main result of … this analysis is that the relationship between long-run growth and uncertainty (on the productivity of knowledge creation …

their risk aversion parameter invest less in risky assets than wealthy investors with identical risk aversion uncertainty. …We show that if an agent is uncertain about the precise form of his utility function, his actual relative risk aversion … may depend on wealth even if he knows his utility function lies in the class of constant relative risk aversion (CRRA …

Regression analyses of cross-country economic growth data are complicated by two main forms of model uncertainty: the … uncertainty in selecting explanatory variables and the uncertainty in specifying the functional form of the regression function …. Controlling for variable selection uncertainty, we confirm the evidence in favor of new growth theory presented in several earlier …

The paper studies risk mitigation associated with capital regulation, in a context when banks may choose tail risk … assets. We show that this undermines the traditional result that higher capital reduces excess risk-taking driven by limited … liability. When capital raising is costly, poorly capitalized banks may limit risk to avoid breaching the minimal capital ratio …

increases with risk aversion and financial market uncertainty. We find that it is likely that mandatory participation is …We explore the feasibility of a funded pension system with intergenerational risk sharing when participation in the … necessary to sustain a funded pension pillar and to let participants benefit from intergenerational risk sharing. …

creating a link. However, the interplay of such uncertainty and risk attitudes has been neglected in the network formation …Agents involved in the formation of a social or economic network typically face uncertainty about the benefits of …, incomplete information, and risk aversion. The model predicts that an agent's risk aversion is correlated with her network …