market fluctuations affect the risk tolerance of households. We used the 1992 to 2013 datasets of the Survey of Consumer … Finances (SCF), and found that whether respondents were willing to take some risk varied somewhat during the period, with … proportion of respondents willing to take substantial or above average investment risk (“high risk tolerance”) fluctuated much …

prevention in the sense of self-insurance (i.e. secondary prevention). Neither risk aversion nor prudence is related to cancer …) depend not only on the level of (second-order) risk aversion but also on higher-order risk preferences such as prudence … (third-order risk aversion). We study empirically whether these theoretical results hold and whether prudent individuals show …

. These findings are consistent with a model of collective household decision making in which spouses have heterogeneous risk …This study examines household portfolio choice through the retirement transition. I show that couples significantly … concentrated among couples in which the wife is more risk averse than her husband. Husbands' and wives' respective retirement …

sophistication. Each measure, nevertheless, provides a different ranking of household risk taking; in addition, the age profile of … households' willingness to undertake portfolio risk. Specifically, we consider four alternative measures of portfolio risk, based …, real estate, business wealth and related debt. The four measures consistently show that risk taking peaked in 2001, many …

We propose a novel approach to infer investors' risk preferences from their portfolio choices, and then use the implied … risk preferences to measure the efficiency of investment portfolios. We analyze a dataset spanning a period of six years … knowledge. Unlike estimates of risk aversion based on the share of risky assets, our statistical analysis suggests that the …

We show that if an agent is uncertain about the precise form of his utility function, his actual relative risk aversion … may depend on wealth even if he knows his utility function lies in the class of constant relative risk aversion (CRRA … their risk aversion parameter invest less in risky assets than wealthy investors with identical risk aversion uncertainty. …

Online Appendix for “Ambiguity Aversion and Household Portfolio Choice Puzzles: Empirical Evidence” …

We test the relation between ambiguity aversion and five household portfolio choice puzzles: non-participation in … representative U.S. household survey, we measure ambiguity preferences using custom-designed questions based on Ellsberg urns. As … theory predicts, ambiguity aversion is negatively associated with stock market participation, the fraction of financial …

We test the relation between ambiguity aversion and five household portfolio choice puzzles: non-participation in … representative U.S. household survey, we measure ambiguity preferences using custom-designed questions based on Ellsberg urns. As … theory predicts, ambiguity aversion is negatively associated with stock market participation, the fraction of financial …