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Although many studies in macroeconomics have examined the role of insurance in the presence of income risk, whether aggregate shocks are insurable has not been sufficiently investigated. We present a simple two-period general equilibrium model to show the conditions under which insurance against...
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primitives such as preferences and beliefs. I review strong biological and behavioral evidence indicating that trusting is not … preferences and beliefs, and it suggests ways to examine and interpret a causal role of trust. … just a special case of risk-taking, but based on important forms of social preferences such as betrayal aversion …
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One approach to analyzing inequality is to compare average economic choices from a classical theoretical framework. Another approach considers the impact of the formation of society, through statutes and institutions, on average economic outcomes. This paper studies the effects of slavery on...
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. In experiments with US voters, we first vary beliefs about whether an outlet reports the news in a right-wing biased …
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