Showing 1 - 10 of 194
We consider a formal approach to comparative risk aversion and applies it to intertemporal choice models. This allows us to ask whether standard classes of utility functions, such as those inspired by Kihlstrom and Mirman [15], Selden [26], Epstein and Zin [9] and Quiggin [24] are well-ordered...
Persistent link: https://www.econbiz.de/10008748230
This paper suggests a new explanation for the low level of annuitization, which is valid even if one assumes perfect markets. We show that, as soon there exists a positive bequest motive, sufficiently risk averse individuals should not purchase annuities. A model calibration accounting for...
Persistent link: https://www.econbiz.de/10009552900
There is an ongoing debate in the literature about whether consumers are fully informed when investing in energy efficiency. We experimentally evaluate the role of imperfect information or limited attention about energy costs of home appliances and light bulbs on households' choices. Using...
Persistent link: https://www.econbiz.de/10012211360
Previous efforts exploring options to increase residential sector's energy efficiency have overlooked that highlighting co-benefits associated with energy efficiency may represent a promising strategy to draw attention from decision makers. For instance, in addition to savings in energy costs,...
Persistent link: https://www.econbiz.de/10013162788
Bounded rationality is an example of an important behavioral failure responsible for the energy-efficiency gap, whereby agents under-invest in energy-efficient technologies. One means of addressing this is by improving the energy-related financial literacy of households, which is defined as the...
Persistent link: https://www.econbiz.de/10011987127
Isolating the role of limited knowledge, psychological frictions and policy characteristics is key when evaluating a public program and designing future policies. This paper explores the role of awareness about the presence of fiscal programs in determining their impact on individual choices....
Persistent link: https://www.econbiz.de/10011987144
Recent research highlights the role of consumer's energy-related financial literacy in adoption of energy efficient household appliances in order to reduce the energy-efficiency gap within the household sector. The computation of an indicator for such a literacy measure has followed a somewhat...
Persistent link: https://www.econbiz.de/10011975577
Quantifying heterogeneity in consumers' misperceptions of product costs is crucial for policy design. We illustrate this point in the energy context and the design of Pigouvian policies. We estimate non-parametric distributions of perceptions of energy costs in the U.S. appliance market using a...
Persistent link: https://www.econbiz.de/10011975591
The literature on the energy-efficiency gap discusses the status-quo bias as a behavioral anomaly that potentially increases the energy consumption of a household through at least three channels: (1) by making consumers keep their energy-using durables as long as possible, until wearout forces...
Persistent link: https://www.econbiz.de/10011920853
A central question in the analysis of fuel-economy policy is whether consumers are myopic with regards to future fuel costs. We provide the first evidence on consumer valuation of fuel economy from a natural experiment. We examine the short-run equilibrium effects of an exogenous restatement of...
Persistent link: https://www.econbiz.de/10012007559