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Individuals' risk preferences are estimated and employed in a variety of settings, notably including choices in financial, labor, and product markets. Recent work, especially in financial economics, provides estimates of individuals' coefficients of relative risk aversion (CRRA's) in excess of...
Persistent link: https://www.econbiz.de/10012468845
Individuals' risk preferences are estimated and employed in a variety of settings, notably including choices in financial, labor, and product markets. Recent work, especially in financial economics, provides estimates of individuals' coefficients of relative risk aversion (CRRA's) in excess of...
Persistent link: https://www.econbiz.de/10012786465
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In many settings, there are preliminary or interim decision points at which legal cases may be terminated: e …' screening and other exercises of discretion in pursuing investigations. This article analyzes how the decision whether to … into the optimal decision rule – some expected, some subtle, and some counterintuitive. The optimal rule for initial or …
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The choice of the proper discount rate is important in the analysis of projects whose costs and benefits extend into the future, a particularly striking feature of policies directed at climate change. Much of the literature, including prominent work by Arrow et al. (1996), Stern (2007, 2008),...
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