In a static Lucas's tree economy, we explore the effect of two types of background risk, uninsurable risk for labor income and miscalibrated risk for payoff distribution of risky asset, on the equilibrium price of the risky asset. Then we analyze the data of U.S. stock market and GDP growth...

The threshold approach to medical decision-making, in which treatment decisions are made based on whether the probability of sickness exceeds a predetermined threshold, was introduced by (Pauker and Kassirer, N Engl J Med 293:229-234, 1975) and (Pauker and Kassirer, N Engl J Med 302:1109-1116,...

The risk attitude plays an important role in analyzing decision making under uncertainty. It is essential to confirm whether the risk aversion parameter in a certain situation, called "domain," can be applied to other situations. Using a dataset on hospitalization insurance policies in Japan,...