lower exchange rate bound vis-à-vis the Euro. This unexpected change of regime induced a temporary uncertainty about future … policy as a natural experiment and exploiting the continuous nature of a micro-level business tendency survey, we identify … the source of uncertainty and disentangle first and second moment effects. We find that price uncertainty affects …

Uncertainty affects employers' decisions on labour workforce, as it does on capital. We exploit differences on how … firms adjust their labour work-force when uncertainty increases. Using data from the Wage Dynamic Network Survey for 25 … European countries, we first construct, opposite to usual aggregate indicators, a set of uncertainty indicators exploiting …

We find that macroeconomic uncertainty plays a significant role in U.S. monetary policy. First, we construct a measure … of uncertainty as felt by policymakers at the time of making their rate-setting decisions. This measure is derived from a … of being in a high-uncertainty regime. Second, we estimate a monetary policy reaction function that, apart from …

This study analyzes the relationship of individual risk attitudes and occupational sorting with respect to occupational … earnings risk. By using the German Mikrozensus, a precise measure for earnings risk is computed as the occupation-wide standard … deviation of wages. Following the procedure proposed by Bonin (2007), this earnings risk measure is used as dependent variable …

-coded administrative wage data from the German IAB Employment Sample (IABS). We then relate these robust measures of earnings risk to the … risk attitudes of individuals working in these occupations. We find that willingness to take risk is positively correlated … with the wage dispersion of an individual's occupation. -- dispersion estimation ; earnings risk ; censoring ; quantile …

Individual risk preference may change after experiencing external socio-economic or natural shocks. Theoretical … predictions and empirical studies suggest that risk taking may increase or decrease after experiencing shocks. So far the … whether experiencing financial and health-related damage caused by storms affects risk preference of individuals in Germany …

In addition to discrimination, market power, and human capital, gender differences in risk preferences might also … in any given period. Subjects were informed of the exogenous risk premium being offered for the risky job. Women were … gap in the experiments. That women were more risk averse than men was also manifest in the Pratt-Arrow Constant Absolute …

We compare seven established risk elicitation methods and investigate how they robustly explain eleven kinds of risky … behavior with 760 individuals. Risk measures are positively correlated; however, their performance in explaining behavior is … heterogeneous and, therefore, difficult to assess ex ante. To close this knowledge gap, greater diversification across risk measures …

Using German panel data, we assess the causal effect of job loss, and thus of an extensive income shock, on risk … attitude. In line with predictions of expected utility reasoning about absolute risk aversion, losing oneś job reduces the … perceives the threat of job loss and is of a transitory nature. The change in stated risk attitude matches observable job …

This paper investigates a corporation's risk management response to highly dynamic risks. Using a unique data set on … the German terrorist insurance market, the paper tests whether corporate risk managers have a clear understanding of the … probability distribution of highly dynamic risks or if risk managers learn from severe losses and base their decisions upon day …