In an analysis of the risk-sharing properties of different types of pension systems, we show that only a fixed-fee pay …-as-you-go (PAYG) pension systems can provide intergenerational risk sharing for living individuals. Under some circumstances, however …

inequality affects the equilibrium value of the equity premium and the risk-free rate. We forst show that welath inequality … raises the equity premium if and only if the inverse of absolute risk aversion is concave in welath. We also show that the … equilibrium risk-free rate is reduced by wealth inequality if the inverse of the coefficient of absolute prudence is concave. …

It is often suggested that the larger the size of risk, the larger our willingness to pay (WTP) for a given reduction … of this risk. We show that this is not true in general in the expected utility model. We examine under which conditions … the WTP for a marginal reduction in the size of risk is increasing. We also examine the closely related question of …

This paper presents an experimental investigation of risk taking in the domain of losses. The experiments are conducted … with students in several universities during introduction rudiments to expected utility theory and risk behaviour. The …. They also show similarities in the risk perception of students across different countries, i.e., a useful validation of …