-transactions. These premia are credit spreads on top of the risk free interest rate and compensate investors for the expected annualized … default loss and for the risk of default losses. Focusing on the second component, the pure risk aversion premium, the paper … estimates the relative risk aversion (RRA) implied by the credit spreads and the loss distributions of 215 differently rated …

.Chapter IIIThis paper experimentally investigates whether risk-averse individuals punish less if the outcome of punishment is … risk-averse subjects are equally likely to cooperate in the prisoner’s dilemma and equally likely to punish in the … risk attitude is a factor when making the decision to cooperate. …

wealth households. Only models of consumption which include precautionary savings motives can explain why poorer households … both reduce their consumption and increase their savings in response to an exogenous decline in income. …This paper examines the extent to which consumption in Russian households responds to exogenous income shocks. During …

positive impact on consumption (by reducing precautionary saving). Takeaways •The strength of the labour market and the rising … and raises household spending levels •Uncertainty regarding future labour income has a particularly strong impact on … durables is most responsive to changes in uncertainty about future labour income are those that lack a minimum buffer of liquid …

when deciding to enroll in the Conservation Reserve Program (CRP) under uncertainty. A theoretical model is employed to … related to the degree of risk aversion and the variability of returns. The econometric model shows that land benefits, land …

environmental regulation uncertainty. An increase in the cost of the environmental regulation moves a risk-averse firm closer to the …. Uncertainty about environmental regulations in the form of the abatement investment and taxes also leads a risk-averse firm to … abatement investment and taxes when the cost of the environmental regulation varies spatially under uncertainty. It contributes …

implication of the two nonlinear mean-standard deviation models to the empirical approach called "joint analysis of risk …

SUMMARY: This study focuses on the analysis of the production behavior and risk preferences in the presence of output … price uncertainty. Following a theoretical model based on the assumption of maximization of expected utility of profits, the … approach used in this study infers information about risk preferences from the production characteristics of the farm. In …

negatively related to basis risk, to quantity risk, and to transaction costs. Farmers who have less uncertainty about prices have … incentive to hedge can be greatly reduced. And finally, farmers who have low levels of risk aversion have little to gain from … hedging in terms of risk reduction, in that the certainty equivalent payoff at their optimal hedge may be little different to …

(1990). This particular feature enables us to isolate the effect of risk aversion on precautionary savings. Furthermore, I … uncertainty about the underlying stochastic process is present in commodity prices. In addition, we build a dynamic stochastic … general equilibrium model with informational frictions, which explicitly considers uncertainty about the nature of shocks …