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Hidden Insurance in a Moral Hazard Economy

Bertola, Giuseppe - 2013

with effort-determined probability. We show that if insurance against a negative shock is sufficiently incomplete, then … standard functional form restrictions ensure that individual objective functions are optimized by an effort and insurance … combination that is unique and satisfies first- and second-order conditions. Modeling insurance incompleteness in terms of costly …

Persistent link: https://www.econbiz.de/10013071425

Universities as Stakeholders in Their Students' Careers : On the Benefits of Graduate Taxes to Finance Higher Education

McKenzie, Tom; Sliwka, Dirk - 2010

We examine ways of funding higher education, comparing upfront tuition fees with graduate taxes. The tax dominates, as volatility in future income is transferred from risk-averse students to the risk-neutral state. However, a double moral hazard problem arises when students' efforts to raise...

Persistent link: https://www.econbiz.de/10013135633

An Alternative Explanation for the Variation in Reported Estimates of Risk Aversion

Conniffe, Denis - 2012

There is a large literature estimating Arrow-Pratt coefficients of absolute and relative risk aversion. A striking feature of this literature is the very wide variation in the reported estimates of the coefficients. While there are often legitimate reasons for these differences in the estimates,...

Persistent link: https://www.econbiz.de/10013099686

Constrained Firms, Not Subsistence Activities : Evidence on Capital Returns and Accumulation in Peruvian Microenterprises

Göbel, Kristin - 2012

We investigate the returns to capital and capital accumulation using panel data of Peruvian micro enterprises (MEs). Marginal returns to capital are found to be very high at low levels of capital, but rapidly decreasing at higher levels. The dynamic analyses of capital accumulation in MEs...

Persistent link: https://www.econbiz.de/10013099706

Risk-Taking Behavior in the Wake of Natural Disasters

Cameron, Lisa A. - 2012

risk are driving the more risk-averse behavior we observe. We show that access to insurance can partly offset this effect …

Persistent link: https://www.econbiz.de/10013099808

Parenting with Style : Altruism and Paternalism in Intergenerational Preference Transmission

Doepke, Matthias - 2013

We construct a theory of intergenerational preference transmission that rationalizes the choice between alternative parenting styles (related to Baumrind 1967). Parents maximize an objective function that combines Beckerian and paternalistic altruism towards children. They can affect their...

Persistent link: https://www.econbiz.de/10013088659

Migration, Risk Attitudes, and Entrepreneurship : Evidence from a Representative Immigrant Survey

Batista, Catia - 2013

Do more risk loving migrants opt for self-employment? This is a question especially relevant for policymakers designing selective immigration policies in countries of destination. In order to provide a rigorous answer to it, we use a novel vignette-adjusted measure of risk preferences in the...

Persistent link: https://www.econbiz.de/10013071756

Risk Aversion and Son Preference : Experimental Evidence from Chinese Twin Parents

Chew, Soo Hong - 2017

insurance for old-age support than daughters. The implications of an insurance motive on son preference are two-fold. First …

Persistent link: https://www.econbiz.de/10012963852

Public Sector Employees : Risk Averse and Altruistic?

Buurman, Margaretha - 2009

We assess whether public sector employees have a stronger inclination to serve others and are more risk averse than employees in the private sector. A unique feature of our study is that we use revealed rather than stated preferences data. Respondents of a large-scale survey were offered a...

Persistent link: https://www.econbiz.de/10013155591

Women, Children and Patience : Experimental Evidence from Indian Villages

Bauer, Michal - 2009

In this paper we study the link between women's responsibility for children and their preferences. We use a large random sample of individuals living in rural India, incentive compatible measures of patience and risk aversion, and detailed survey data. We find more patient choices among women...

Persistent link: https://www.econbiz.de/10013158525