-markets consumption allocation. There is substantial heterogeneity in risk preferences estimated from the full-insurance model, positively …We measure heterogeneity in risk aversion among households in Thai villages using a full risk-sharing model and … village, full insurance cannot be rejected, suggesting that relatives provide something close to a complete …

.S. household survey, we measure ambiguity aversion using custom- designed questions based on Ellsberg urns. As theory predicts …We test the relation between ambiguity aversion and five household portfolio choice puzzles: non- participation, low …

Heterogeneously risk-averse individuals who lack access to formal insurance build and use relationships with each other … to manage risk. I study the formation of these relationships. I show that the composition of equilibrium groups under … reduction in aggregate risk may lead to an increase in risk borne by the most risk-averse individuals, as the least risk …

options in defined contribution retirement plans. We document large differences in realized TDF returns and risk profiles …, even for funds with the same target retirement date. Using fund-level data, we find evidence that this heterogeneity … reflects optimal risk-taking by fund families with low market share, especially those entering the market after 2006. Using …

Can measured risk attitudes and associated structural models predict insurance demand? In an experiment (n = 1,730), we … various risk-attitude measures. Yet all the structural models predict insurance poorly, often less accurately than random … parameterize seventeen common structural models (e.g., expected utility, cumulative prospect theory). Subjects also make twelve …

This paper re-examines the classic question of how a household should optimally allocate its portfolio between risky … stocks and risk-free bonds over its lifecycle. We show that allowing for the wage indexation of social security benefits …

This paper investigates the determinants of financial risk-taking in a panel containing the asset holdings of Swedish … significantly positive and estimated at 22%, which suggests that the average individual investor has decreasing relative risk … estate wealth and household size. As a consequence, the elasticity of the aggregate demand for risky assets to exogenous …

wealth and household size, and to a lesser extent with education and proxies for financial experience. The index is strongly … positively correlated with the share of risky assets held by a household …

This paper investigates the efficiency of household investment decisions in a unique dataset containing the …

corporate risk-taking decisions. Higher taxes reduce expected profits more for risky projects than for safe ones, as the … government shares in a firm's upside but not in its downside. Consistent with this prediction, we find that risk taking is … sensitive to taxes, albeit asymmetrically: the average firm reduces risk in response to a tax increase (primarily by changing …