What determines risk-bearing capacity and the amount of leverage in financial markets? Using unique archival data on … collateralized lending, we show that personal experience can affect individual risk-taking and aggregate leverage. When an investor … money. Nonetheless, only those at risk of losing money changed their behavior markedly – they lent with much higher haircuts …

this phenomenon focus on rational gamblers who overbet longshots due to risk-love. The competing behavioral explanations …

Tourism is a fast-growing services sector in developing countries. This paper combines a rich collection of Mexican … consequences of tourism both locally and in the aggregate. We find that tourism causes large and significant local economic gains … regions, so that the national gains from trade in tourism are mainly driven by a classical market integration effect …

We analyze the returns to education in a life-cycle framework that incorporates risk preferences, earnings volatility …