). We ftnd that equity market valuation is consistent with discounting without allowing for credit risk. This differs from … a corporate bond yield. The difference is signiftcant, as credit risk free discounting would decrease the reported value …

risk. However, it is only recently that this intuitive notion has been formalized and axiomatically characterized. We … one can jointly estimate attitudes towards uncertainty, attitudes towards risk, and subjective probabilities in a rigorous … uncertainty aversion in an empirically tractable manner. Our results show that attitudes towards risk and uncertainty can be …