The preferred risk habitat hypothesis, introduced here, is that individual investors select stocks with volatilities … commensurate with their risk aversion; more risk-averse individuals pick lower-volatility stocks. The investors' portfolio … stocks are sold they are replaced by stocks of similar volatilities, and the more risk averse customers indeed hold less …

earnings deter risk-averse individuals. In this paper I analyse the expected value and variance of income in self …-employment entry and exit under risk are estimated, which include a standard risk aversion parameter. The model predicts that the …

parameter of risk aversion. The simulation results indicate that flatter tax systems do not encourage, but rather discourage … people from choosing self-employment. This is explained by the reduction of entrepreneurs' income risk through progressive …

In this paper we build on the Cunha, Heckman and Navarro (2005) and show that labor earnings risk has increased …

. Spouses have to choose between risky lotteries, first separately and then jointly. We find that spouses' individual risk …