markets, followed by an independent investment task. Subjects, who learned in bust market environments, form overly …What determines investors' risk-taking across macroeconomic cycles? Researchers have proposed rational expectations … models that introduce countercyclical risk aversion to generate the empirically observed time variation in risk-taking. We …

risk-taking across market cycles. As mechanism, we identify an asymmetry in how individuals update their expectations … asset prices. While surveys are helpful to establish a link between subjective beliefs and investment decisions, precise …

three-months intervals for their willingness to take risk, three-months expectations of returns and risks for the market and …, changes in risk taking were associated with changes in subjective expectations of market portfolio risk and returns, but less …Between September08 and June09, a period with significant market events, we surveyed UK online-brokerage customers at …