Are more risk averse agents more optimistic? Insights from a rational expectations model

We analyse a model of partially revealing, rational expectations equilibrium with diverse information, endogenous beliefs formation and uncertain distribution of risk aversion. More risk averse agents are then more optimistic. Such a positive correlation is important for collective decision analysis.

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Year of publication:	2008
Authors:	Jouini, Elyès ; Napp, Clotilde
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 101.2008, 1, p. 73-76
Publisher:	Elsevier
Keywords:	Optimism Risk aversion Rational expectations Heterogenous beliefs

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005297003