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Most public-sector pension plans in the United States provide quite generous defined benefits. Long-term projections show that full payment of these promises threatens the finances of many state and local employers, which implies that taxes will have to be increased or pensions and/or other...
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We use data from a television game show involving elementary lotteries and sSubstantial prize money as a natural experiment to measure risk attitudes.We find robust evidence of substantial risk aversion.
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