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Health Values, Preference Inconsistency, and Insurance Demand

Wrede, Matthias - CESifo - 2005

Several empirical studies provide evidence that their actual health state affects people’s attitudes towards health and medical care in hypothetical health states. In the tradition of behavioural economics this paper considers the actual health state as a point of reference and builds a model...

Persistent link: https://www.econbiz.de/10005406000

A Parametric Analysis of Prospect Theory's Functionals for the General Population

Booij, Adam S.; Praag, Bernard M.S. Van; Kuilen, Gijs Van De - CESifo - 2009

This paper presents the results of an experiment that completely measures the utility function and probability weighting function for different positive and negative monetary outcomes, using a representative sample of N = 1935 from the general public. The results confirm earlier findings in the...

Persistent link: https://www.econbiz.de/10005000376

Consistency of Higher Order Risk Preferences

Deck, Cary; Schlesinger, Harris - CESifo - 2012

Risk aversion (a 2nd order risk preference) is a time-proven concept in economic models of choice under risk. More recently, the higher order risk preferences of prudence (3rd order) and temperance (4th order) also have been shown to be quite important. While a majority of the population seems...

Persistent link: https://www.econbiz.de/10010602003

Poverty and Welfare Measurement on the Basis of Prospect Theory

Jäntti, Markus; Kanbur, Ravi; Nyyssölä, Milla; … - CESifo - 2013

This paper examines the measurement of social welfare, poverty and inequality taking into account reference-dependence, loss aversion and diminishing sensitivity—aspects emphasized in Prospect Theory—to social welfare measurement. We suggest a new notion of equivalent income, the income...

Persistent link: https://www.econbiz.de/10010607471

Discounting and Welfare Analysis Over Time: Choosing the ç

Schumacher, Jan; Buchholz, Wolfgang - CESifo - 2008

Based on the Ramsey equation and an ethically motivated rejection of pure utility time discount, the Stern Review on the Economics of Climate Change concentrates on the use of the elasticity of marginal utility ç in the intergenerational social welfare function. We support this position by...

Persistent link: https://www.econbiz.de/10005405959

Fair Intergenerational Utilitarianism: Risk, its Resolution over Time, and Discounting

Piacquadio, Paolo Giovanni - CESifo - 2014

resolution of risk, (iii) show different discounting formulas depending on the magnitude of risk and on the timing of its …

Persistent link: https://www.econbiz.de/10011103396

Carbon Leakage: A Medium- and Long-Term View

Habermacher, Florian - CESifo - 2015

studies. Discounting reduces present-value leakage as global emissions are delayed. Containing climate change requires future …

Persistent link: https://www.econbiz.de/10011167138

Not so Myopic Consumers - Evidence on Capitalization of Energy Technologies in a Housing Market

Harjunen, Oskari; Liski, Matti - CESifo - 2014

Policies affecting the cost of energy use provide correct incentives for technology choices only if there is a market reward for energy efficiency. We provide clean evidence for market efficiency by considering how heating technologies capitalize into house values using detailed Finnish register...

Persistent link: https://www.econbiz.de/10010948877

Discounting in an Uncertain World - Disentangling the Debate on the Weitzman-Gollier Puzzle

Buchholz, Wolfgang - CESifo - 2014

Under conditions of risk it makes a difference whether the discount rate is determined as an expected present or as an expected future value. This difference which is dubbed as the Weitzman-Gollier puzzle has stimulated an intensive discussion which, however, is somewhat confusing. In this paper...

Persistent link: https://www.econbiz.de/10010948878

Sacrifice, Discounting and Climate Policy: Five Questions

Karp, Larry S. - CESifo - 2009

I offer a selective review of discounting and climate policy. Analytic and numerical models show that different …, affects the role of discounting. I argue that the assertion that the risk of catastrophic damage overwhelms discounting is … unfounded. I show that the claim that we “view the world in perspective” implies hyperbolic rather than constant discounting. …

Persistent link: https://www.econbiz.de/10005013940