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related to life and annuity insurance industries' experience studies. In this paper, we present a logistic regression model …
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We use data on households' deductible choices in auto and home insurance to estimate a structural model of risky choice … that incorporates "standard" risk aversion (concave utility over final wealth), loss aversion, and nonlinear probability …. Our main findings are robust to a variety of modeling assumptions. -- deductible ; loss aversion ; probability weighting …
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We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates "standard …" risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions … important role in explaining the aversion to risk manifested in deductible choices. This finding is robust to allowing for …
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