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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 …
Persistent link: https://www.econbiz.de/10012915178
The standard expected utility model of tax evasion predicts that evasion is decreasing in the marginal tax rate (the Yitzhaki puzzle). The existing literature disagrees on whether prospect theory overturns the puzzle. We disentangle four distinct elements of prospect theory and find loss...
Persistent link: https://www.econbiz.de/10013072161
stronger distaste for low relative wealth translates into reduced relative risk aversion and, consequently, into riskier … prone to divorce exhibit risk-taking behavior that is more similar to that of single men than married men in environments …
Persistent link: https://www.econbiz.de/10012864857
are too impatient to save and too risk averse to take the sort of chances needed to accumulate wealth. The empirical … the issues confounding previous analyses of the links between risk preferences and well-being. Our sample includes more … on risk preferences, we find little evidence of robust links between risk aversion and well-being. However, when we …
Persistent link: https://www.econbiz.de/10013136481
Why are better educated and more risk-friendly persons more mobile across regions? To answer this question, we use … patterns. Our findings indicate that risk-loving and skilled people are more mobile over longer distances because they are more … distance-related migration costs cannot explain the lower distance sensitivity of educated and risk-loving individuals …
Persistent link: https://www.econbiz.de/10013099712
-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 …
Persistent link: https://www.econbiz.de/10013107726
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 …
Persistent link: https://www.econbiz.de/10012868010
This paper provides evidence that subjective measures of individual well being can be used to study the impact of income uncertainty from an ex ante point of view. Two different measures of subjective well being are under study: Satisfaction with household income and the income evaluation...
Persistent link: https://www.econbiz.de/10013324950
We looked at risk and ambiguity attitudes among Ethiopian peasants in one of the poorest regions of the world and … compared their attitudes to a standard Western university student sample elicited by the same decision task. Strong risk … students, but peasants were more risk averse. Testing for the effect of socio-economic variables on uncertainty attitudes …
Persistent link: https://www.econbiz.de/10013095831
We study the interrelation between two types of risk sharing -- within the firm and on capital markets -- by analyzing … the effect of wrongful-discharge laws (WDLs) on stock returns. Consistent with rational, risk-based pricing, the effect on … returns is linked to how shareholders and workers share systematic risk via distinct channels of employment and wage …
Persistent link: https://www.econbiz.de/10013246408