We use data on households' deductible choices in auto and home insurance to estimate a structural model of risky choice that incorporates "standard" risk aversion (concave utility over final wealth), loss aversion, and nonlinear probability weighting. Our estimates indicate that nonlinear...

Recently a number of countries have experienced a prolonged slowdown in aggregate economic activity accompanied by a signi.cant deterioration of the banks.net worth. This paper studies the optimal bank behavior when they are severely undercapitalized but continue to operate due to lax government...

Shortly after the Revolution of 1789 France experienced a period of major hyper- inflation, which lasted until 1796, when the French government abolished the paper money and returned to the specie. In 1798 the French government ordered the local authorities in all departments to construct the...