Probabilistic risk beliefs are key drivers of economic and health decisions, but people are not always certain about … measurable separately from the levels of risk beliefs. People with higher levels of imprecision update their beliefs more in …

households reduce their financial risk exposure when confronted with background risk. Our novel modelling approach - termed a … risk, and is unique in recovering for, any given risky asset class, the shares that are reallocated to a safer asset … category. Background risk exerts a significant impact on household portfolios, resulting in a 'flight from risk', away from …

take risk as measured by the general risk question. We demonstrate that this disposition, which we call risk conception, is … strongly associated with optimism, a stable facet of personality and that it predicts real-life risk taking. The general risk … question captures this disposition alongside pure risk preference. This enlightens why the general risk question is a better …

been derived only for particular cases (Abadie and Imbens, 2006). This article establishes a martingale representation for … matching estimators. This representation allows the use of martingale limit theorems to derive the asymptotic distribution of … matching estimators. As an illustration of the applicability of the theory, we derive the asymptotic distribution of a matching …

present a model which incorporates elements from the theory of information cascades with the standard model of tax evasion and …

Bayesian Updating is the dominant theory of learning in economics. The theory is silent about how individuals react to …

We consider the external validity of laboratory measures of risk attitude. Based on a large-scale experiment using a … laboratory risky financial decisions, and (ii) behavior in naturally-occurring field behavior under risk (financial, health and … employment decisions). We find that measures of risk attitude are related to behavior in laboratory financial decisions and the …

We present first evidence how individual risk preferences shape entrepreneurial investment among the very wealthy using … standard measure of risk tolerance. We find that wealthy individuals are more likely to be entrepreneurs and invest a larger … ways strongly determined by individual risk tolerance. Since the wealthy dominate aggregate risky investment, their risk …

this relation is driven by a link between internal economic locus of control and a lower perception of the risk of …

excessive financial risk. Recent theory concludes that 10-15% of a worker's wealth portfolio can be prudently invested in … financial risk. We also find that families with employer stock are found to express more tolerance of financial risk, have … financial risk does not appear to represent a substantial problem in practice for most employee share owners, a small minority …