Narrow search
Showing 1 - 10 of 159
Cover Image
Social Insurance with Competitive Insurance Markets and Risk Misperception
Cremer, Helmuth - 2016
This paper considers an economy where individuals differ in productivity and in risk. Rochet (1991) has shown that when … private insurance markets offer full coverage at fair rates, social insurance is desirable if and only if risk and … violated for the old age dependency risk (mainly because longevity in turn is positively correlated with productivity). We …
Persistent link: https://www.econbiz.de/10013001310
Cover Image
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
Cover Image
Portfolio Allocation, Income Uncertainty and Households' Flight from Risk
Brown, Sarah - 2016
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 …
Persistent link: https://www.econbiz.de/10012977335
Cover Image
A Martingale Representation for Matching Estimators
Abadie, Alberto - 2009
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 …
Persistent link: https://www.econbiz.de/10012764230
Cover Image
How Does the Economic Uncertainty Affect Asset Prices Under Normal and Financial Distress Times?
Balcilar, Mehmet; Ozdemir, Zeynel Abidin; Ozdemir, Huseyin - 2022
By using a nonlinear VAR model, we investigate whether the response of the US stock and housing markets to uncertainty shocks depends on financial conditions. Our model allows us to change the response of the US financial markets to volatility shocks in periods of normal and financial distress....
Persistent link: https://www.econbiz.de/10013406435
Cover Image
The Distribution of Ambiguity Attitudes
Gaudecker, Hans-Martin von; Wogrolly, Axel; Zimpelmann, … - 2022
This paper analyzes the stability and distribution of ambiguity attitudes using a broad population sample. Using high-powered incentives, we collected six waves of data on ambiguity attitudes about financial markets – our main application – and climate change. Estimating a structural...
Persistent link: https://www.econbiz.de/10014236203
Cover Image
Why Pay Taxes When No One Else Does?
Epstein, Gil S. - 2009
In this paper we try to understand the phenomena whereby a large proportion of the population evades tax payments. We present a model which incorporates elements from the theory of information cascades with the standard model of tax evasion and analyze the connection between the decision of a...
Persistent link: https://www.econbiz.de/10013159940
Cover Image
Beliefs and Utility : Experimental Evidence on Preferences for Information
Falk, Armin - 2016
Beliefs are a central determinant of behavior. Recent models assume that beliefs about or the anticipation of future consumption have direct utility-consequences. This gives rise to informational preferences, i.e., preferences over the timing and structure of information. Using a novel and...
Persistent link: https://www.econbiz.de/10012983901
Cover Image
Ambiguity and Excuse-Driven Behavior in Charitable Giving
Garcia, Thomas - 2020
excuse-driven behavior is comparable under ambiguity and under risk. Individuals exploit any type of uncertainty as an excuse …
Persistent link: https://www.econbiz.de/10012843721
Cover Image
Foundations of the Rank-Dependent Probability Weighting Function
Rablen, Matthew D. - 2019
The psychological basis for rank-dependent probability weighting, and for an inverse-S probability weighting function (PWF) in particular, has often been questioned. I examine the existence and shape of the PWF in a model allowing for optimism/pessimism over probability distributions and for...
Persistent link: https://www.econbiz.de/10012860507