the internal margin, i.e., the strength, of loss aversion, and empirically study the relation between income risk …-income population of Bogotá, characterized by limited financial education and subject to substantial income risk. In line with the … theoretical predictions, we find that an increase in income risk is associated with higher savings for loss-averse individuals …

empirically study the relation between income risk, experimentally elicited loss aversion, and precautionary savings. We do so … subject to substantial income risk. In line with the theoretical predictions, we find that an increase in income risk is … aversion. An accompanying laboratory experiment confirms that an exogenous increase in income risk causally leads to this …

People exercising mental accounting have an additional motive for buying insurance. They perceive a risk of having … insufficient funds available to self-insure. In this way insurance protects the consumption value of the insured asset beyond the …, and explains the observed sensitivity of this aversion to the insurance context. Finally, it predicts a strong impact of …

modest-risk insurance. I derive the value of partial insurance based on the access motive and show how it critically depends …I explore the potential of an alternative insurance motive, the access motive, to better understand attitudes toward … access motive relevant for understanding the popularity of insurance against modest risks such as warranties and the …