correlation, we exploit an exogenous shock to local market consumption of lottery gambling. We use the sale of a winning ticket in … test is unique in being based on an observed increase in consumption coming from a randomly assigned shock. Second, our … initial shock persists, though estimates become less precise. These estimates provide an upper bound on the degree of …

structurally estimate the parameters of the decision problem governing time preference, risk aversion, and probability weighting …

We examine the extent to which an individual's actual insurance and investment choices display a stable ranking in … willingness to bear risk, relative to his peers, across different contexts. We do so by examining the same individuals' decisions … find that the relationship between insurance and investment choices appears considerably larger for employees who may be …

We measure heterogeneity in risk aversion among households in Thai villages using a full risk-sharing model and …-markets consumption allocation. There is substantial heterogeneity in risk preferences estimated from the full-insurance model, positively … would benefit from eliminating village-level risk, less-risk-averse households who are paid to absorb that risk would be …

We use newly-available Indian panel data to estimate how the returns to planting-stage investments vary by rainfall … realizations. We show that the forecasts significantly affect farmer investment decisions and that these responses account for a … when there is no skill. We show, using an IV strategy in which the Indian government forecast of monsoon rainfall serves as …

We investigate whether experiencing a natural disaster affects risk-taking behavior. We conduct standard risk games … flood or earthquake exhibit more risk aversion. Experiencing a natural disaster causes people to perceive that they now face … a greater risk of a future disaster. We conclude that this change in perception of background risk causes people to take …