We propose the use of Bayesian estimation of risk preferences of individuals for applications of behavioral welfare … economics to evaluate observed choices that involve risk. Bayesian estimation provides more systematic control of the use of … informative priors over inferences about risk preferences for each individual in a sample. We demonstrate that these methods make …

activities within the household. However, this prediction may not hold in the presence of risk. Using data on farm plots and non …-farm enterprises in Malawi, we examine the impact of risk on the allocation decisions of agricultural households as they allocate labor …

farm and non-farm households within counties and over time. The results suggest that increased rainfall risk does indeed … shows that this effect is reduced if risk management devices such as irrigation systems, formal financial institutions or … machinery emerge. The findings contribute to the understanding of the demographic transition in the US and in risk-prone areas …

rate contracts in the presence of output risk, and provide novel insights that reference dependent preferences affect the … tradeoff between risk and incentives. Subjects in our experiments choose their compensation for performing a real-effort task … from a menu of linear piece rate and fixed payment combinations. As classical principal-agent models predict, more risk …

-coded administrative wage data from the German IAB Employment Sample (IABS). We then relate these robust measures of earnings risk to the … risk attitudes of individuals working in these occupations. We find that willingness to take risk is positively correlated … with the wage dispersion of an individual's occupation. -- dispersion estimation ; earnings risk ; censoring ; quantile …

Microeconomic theory predicts that under certain regularity conditions higher idiosyncratic risk increases the … propensity to insure against independent marketable risks. We apply these predictions to the specific case of labor income risk … and car insurance using data from the UK. The main empirical results are: - higher labor income risk induces a higher …

This paper reconsiders the wide agreement that females are more risk averse than males providing a leap forward in its …

In addition to discrimination, market power, and human capital, gender differences in risk preferences might also … in any given period. Subjects were informed of the exogenous risk premium being offered for the risky job. Women were … gap in the experiments. That women were more risk averse than men was also manifest in the Pratt-Arrow Constant Absolute …