consumption in any present or future state of nature (good or bad). As a result the degree of loss aversion does not directly … present value of its endowment income, then the household cannot avoid experiencing a relative loss in consumption, either now … or in the future. As a result, loss aversion directly affects consumption and risky investment. Reference levels play a …

reference level and the degree of loss aversion. Among others we find that the household increases its exposure to risky assets …

According to the behavioral concept of myopic loss aversion (MLA), investors are more willing to take risks if they are …

Myopic loss aversion (MLA) has been established as one prominent explanation for the equity premium puzzle. In this … loss aversion. When subjects are given the choice to opt for a long or short investment horizon, there is no clear …

We explicitly derive and explore the optimal consumption and portfolio policies of a loss- averse individual who … without human capital. The welfare loss that this individual would suffer under the conventional CRRA consumption and …

We explicitly derive and explore the optimal consumption and portfolio policies of a loss-averse individual who … human capital. The welfare loss that this individual would suffer under the conventional CRRA consumption and portfolio …

framework of myopic loss aversion. Under this framework, traditional momentum strategies are no longer anomalous and risk … the impact of myopia over an international sample. Consistent with the predictions of myopic loss aversion, we find that … the momentum premium is higher for countries that are predisposed to myopia. We therefore argue that myopic loss aversion …