Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry …

We develop a method to estimate domain-specific risk. We apply the method to sickness insurance by fitting a utility … risk aversion increases with income. Second, marginal utility is higher in the sick state conditional on income, due to an … observed fixed cost of sickness. Third, the domain-specificity of risk shifts the focus on the smoothing of utility, not …

The relationship between risk in the environment, risk aversion and inequality aversion is not well understood … with varying degrees of risk (“endowment risk”) influence individual behavior. We derive theoretical predictions for these … games using utility functions that capture additively separable constant relative risk aversion and inequity aversion. We …

although risk can be measured, uncertainty cannot be measured. Even though risk can be measured, a simple symmetric measure … attempt at "measuring" risk or (fundamental) uncertainty is flawed. …