heterogeneity. The consumers' environment, however, affects risk aversion. Individuals who are more likely to face income … uncertainty exhibit a higher degree of absolute risk aversion, consistent with recent theories of attitudes towards risk in the …

Theoretical models of investment under uncertainty predict that the sign and the strength of the investment-uncertainty … investment and the market power of the firm. This paper investigates the effects of uncertainty on the investment decisions of a … firms’ products according to entrepreneurs. The results support the view that uncertainty slows down capital accumulation …

characterized by massive unexplained heterogeneity. However, the consumers' environment affects risk aversion. Individuals who are … more likely to face income uncertainty or to become liquidity constrained exhibit a higher degree of absolute risk aversion …