Showing 1 - 10 of 2,093
This paper presents evidence of a significant positive relationship between the ratios of life insurance premiums quoted to smokers relative to the premiums quoted to non-smokers, and the financial strength of the insurance company. This suggests that life insurers reveal increasing relative...
Persistent link: https://www.econbiz.de/10013132067
Classic option pricing theory values a derivative contract via dynamic replication, and views the derivative as redundant relative to the replicating portfolio. In practice, while dynamic replication proves highly effective in drastically reducing the risk in derivative investments, the...
Persistent link: https://www.econbiz.de/10013244989
Europäischen Union - sowohl in sozialer als auch in politischer Hinsicht abzuschätzen. Unsicherheit und subjektive Wahrnehmungen … natürliches Experiment um zu zeigen, wie kollektive Unsicherheit, die durch nationale Regierungspolitik induziert wird, das … EinwanderInnen in Deutschland durchgeführt wurden, um zu zeigen, dass die Unsicherheit über zukünftige bilaterale Beziehungen und die …
Persistent link: https://www.econbiz.de/10012263481
This study explores people's risk attitudes after having suffered large real-world losses following a natural disaster. Using the margins of the 2011 Australian floods (Brisbane) as a natural experimental setting, we find that homeowners who were victims of the floods and face large losses in...
Persistent link: https://www.econbiz.de/10009575974
We present a semiparametric method to estimate group-level dispersion, which is particularly effective in the presence of censored data. We apply this procedure to obtain measures of occupation-specific wage dispersion using top-coded administrative wage data from the German IAB Employment...
Persistent link: https://www.econbiz.de/10009534948
Standard economic theory assumes that individual risk taking decisions are independent from the social context. Recent experimental evidence however shows that the income of peers has a systematic impact on observed degrees of risk aversion. In particular, subjects strive for balance in the...
Persistent link: https://www.econbiz.de/10010532452
Experimental studies of the WTP-WTA gap avoid social trading by implementing an incentive compatible mechanism for each individual trader. We compare a traditional random price mechanism and a novel elicitation mechanism preserving social trading, without sacrificing mutual incentive...
Persistent link: https://www.econbiz.de/10010229862
In this paper we propose an approach to vulnerability called perceived vulnerability to downside risk. We argue that the other concepts of vulnerability, though partially adhering to the focus axiom, do not exclusively consider downside risks in their measures. The reason for this is that most...
Persistent link: https://www.econbiz.de/10010339422
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 one’s job reduces the willingness to take risks. This effect strengthens in...
Persistent link: https://www.econbiz.de/10011442282
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 empirical evidence is sparse, especially when it comes to...
Persistent link: https://www.econbiz.de/10011454120