In fifteen European countries, China, and the US, stocks and business equity as a share of total household assets are … labor-income risk can explain much of this risk-taking pattern. Uncontrollable labor-income risk stresses middle …, middle-income households reduce (controllable) financial risk. Richer households, having less pressure, can afford more risk …

Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry … the covariance of income and loan repayments may explain higher household borrowings than in the case without default … that in a situation in which a household without default option would neither borrow nor save, the existence of a default …

and on the literature of imperfectly divisible consumption to argue that the general purpose of insurance is not a risk … transfer, but meeting a conditional need. In this way, insurance aligns the risk in one's ftnancial endowment with the risk in …I revisit the question of which motive underlies insurance demand. I draw on the literature of state-dependent utility …

explainable by household characteristics as well as differences in risk aversion and a remainder. We employ the unexplained part …We use cross-country microdata to analyse the risk taking of households in Europe and the US. Concerning the extensive … inside Europe we document substantial differences. Furthermore, average risk aversion is strongly correlated with the share …

Despite a considerable premium on equity with respect to risk free assets, many households do not own stocks. We ask … why the prevalence of stockholding is so limited. We focus on individuals' attitudes towards risk and identify relevant … factors that affect the willingness to take financial risks. Our empirical evidence contradicts standard portfolio theory, as …

an increase in ambiguity is associated with increased investor activity. It also leads to a reduction in risk …

From standard portfolio-choice theory it is well-understood that background risk, overwhelmingly due to wage risk, is … one of the central determinants of individuals’ portfolio composition: higher background risk reduces risky investments …. However, if background risk is negatively correlated with financial market risk, higher background risk implies more risky …

-markets consumption allocation. There is substantial heterogeneity in risk preferences estimated from the full-insurance model, positively …We measure heterogeneity in risk aversion among households in Thai villages using a full risk-sharing model and … correlated in most villages with portfolio-choice estimates. The heterogeneity matters for policy: Although the average household …