We empirically compare the consistency among several measures of risk-taking and patience by evaluating how these …

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. …

financial planners can use to help clients overcome behavioral hurdles.• Risk assessment questions that measure loss aversion … for certainty has been observed in advanced age and older defined contribution investors exhibit equity-varying risk … aversion, so client risk preferences should be reassessed later in life.• Clients face declining cognitive abilities over time …

This paper examines how digital finance development affects household risk sharing in China. We provide convincing … household risk sharing. However, the development of traditional banking credit market does not appear to promote risk sharing. … of reduction in idiosyncratic consumption growth in regions with better digital financial inclusion. Improved risk …

arbitrary (but finite) number of projects and the termination time. The optimal policy depends on the projects' risk …-adjusted drifts that are determined by their drifts, volatilities and the curvature (or relative risk aversion) of the agent's payoff … function. We prove that the optimal policy only selects projects in the spanning subset. Further, if the projects' risk …

This paper examines households' self-insurance in financial markets when a rare personal disaster, such as disability … or long-term unemployment, may occur during working years. Personal disaster risk alters lifetime ex-ante investment … characterizes rare disasters, results in lower risk-taking at the beginning of working life, and is crucial in order to match the …

arbitrary (but finite) number of projects and the termination time. The optimal policy depends on the projects' risk …-adjusted drifts that are determined by their drifts, volatilities and the curvature (or relative risk aversion) of the agent's payoff … function. We prove that the optimal policy only selects projects in the spanning subset. Further, if the projects' risk …

options in defined contribution retirement plans. We document large differences in realized TDF returns and risk profiles …, even for funds with the same target retirement date. Using fund-level data, we find evidence that this heterogeneity … reflects optimal risk-taking by fund families with low market share, especially those entering the market after 2006. Using …

Expected utility functions are limited to second-order (conditional) risk aversion, while non-expected utility … functions can exhibit either first-order or second-order (conditional) risk aversion. We extend the concept of orders of … conditional risk aversion to orders of conditional dependent risk aversion. We show that first-order conditional dependent risk …

This paper investigates whether multivariate crash risk (MCRASH), defined as exposure to extreme realizations of … returns than stocks with low MCRASH. The premium is not explained by linear factor exposures, alternative downside risk … measures or stock characteristics. Extending market-based definitions of crash risk to other well-established factors helps to …