category. Background risk exerts a significant impact on household portfolios, resulting in a 'flight from risk', away from …

We show how to use panel data on household consumption to directly estimate households’ risk preferences. Specifically … preferences. Full insurance cannot be rejected. As the risk-sharing as-if-complete-markets theory might predict, estimated risk … preferences are unrelated to wealth or other characteristics. The heterogeneity matters for policy: Although the average household …

explainable by household characteristics as well as differences in risk aversion and a remainder. We employ the unexplained part …

.S. household survey, we measure ambiguity aversion using custom- designed questions based on Ellsberg urns. As theory predicts …We test the relation between ambiguity aversion and five household portfolio choice puzzles: non- participation, low …

From standard portfolio-choice theory it is well-understood that background risk, overwhelmingly due to wage risk, is …