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Asset Integration, Risk Taking and Loss Aversion in the Laboratory
Morrison, William G. - 2019
We report on a laboratory experiment testing for the presence of loss aversion, as separate from risk aversion …, utilizing an asset integration protocol designed to ensure that a loss of cash provided by the experimenter is viewed as a real … loss by experimental participants. Our experimental design augments the Holt-Laury risk preference elicitation methodology …
Persistent link: https://www.econbiz.de/10012870215
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The Economics of Dual Job Holding : A Job Portfolio Model of Labor Supply
Renna, Francesco - 2006
In this paper we develop a job portfolio model of dual job holding based on a Stone-Geary utility function. We derive the associated Slutsky equation components. Because the job portfolio model applies only to unconstrained dual jobholders, we separate individuals who moonlight because of an...
Persistent link: https://www.econbiz.de/10012783284
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Locus of Control and Investment in Risky Assets
Salamanca, Nicolas - 2016
We show that household heads with a strong internal economic locus of control are more likely to hold equity and hold a larger share of equity in their investment portfolio. This relation holds when we control for economic preferences and possible confounders such as financial literacy,...
Persistent link: https://www.econbiz.de/10012977336
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Skewness Expectations and Portfolio Choice
Drerup, Tilman H.; Wibral, Matthias; Zimpelmann, Christian - 2022
Many models of investor behavior predict that investors prefer assets that they believe to have positively skewed return distributions. We provide a direct test of this prediction in a representative sample of the Dutch population. Using individual-level data on return expectations for a broad...
Persistent link: https://www.econbiz.de/10013406448
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Reference Points and Effort Provision
Abeler, Johannes - 2009
A key open question for theories of reference-dependent preferences is what determines the reference point. One candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment, we manipulate the rational expectations of subjects...
Persistent link: https://www.econbiz.de/10012765260
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Loss Aversion in the Laboratory
Morrison, William G. - 2014
We report the results of a laboratory experiment testing for the existence of loss aversion in a standard risk aversion … incentivized risk preference elicitation task. We find loss aversion, distinct from risk aversion, has a significant effect on …
Persistent link: https://www.econbiz.de/10013050634
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Individual-Level Loss Aversion in Riskless and Risky Choices
Gaechter, Simon; Johnson, Eric J.; Herrmann, Andreas - 2021
Loss aversion can occur in riskless and risky choices. Yet, there is no evidence whether people who are loss averse in … riskless choices are also loss averse in risky choices. We measure individual-level loss aversion in riskless choices in an … manufacturer). All subjects also participate in a simple lottery choice task which arguably measures loss aversion in risky choices …
Persistent link: https://www.econbiz.de/10013316870
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Portfolio Allocation in the Face of a Means-Tested Public Pension
Cobb-Clark, Deborah A. - 2011
Is there evidence that households adjust their asset portfolios just prior to retirement in response to a means-tested public pension? We address this question by estimating a system of asset equations constrained to add up to net worth. We find little evidence that in 2006 healthy households or...
Persistent link: https://www.econbiz.de/10013134282
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Trust and the Choice between Housing and Financial Assets : Evidence from Spanish Households
El-Attar, Mayssun - 2010
Trusting behavior has been shown to affect households' portfolio choice between risky and risk-free financial assets. We extend the analysis of the effect of trust on portfolio choice to include the dominant component of households' portfolios, real estate. In a simple model, we show how the...
Persistent link: https://www.econbiz.de/10013136779
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Debt Portfolios
Hintermaier, Thomas - 2011
We provide a model with endogenous portfolios of secured and unsecured household debt. Secured debt is collateralized by owner-occupied housing whereas unsecured debt can be discharged according to bankruptcy regulations. We show that the calibrated model matches important quantitative...
Persistent link: https://www.econbiz.de/10013126139