uninsured capital income risk, and suffer from an information-processing capacity constraint. For given attention devoted to … capital income risk, we solve for the optimal consumption-saving choices and show that the expected welfare is increasing with … capacity, assuming a relative risk aversion degree larger than unity. Furthermore, we solve for attention choice and find that …

first-order approximated solution built by perturbation methods accounts for risk. We show that risk matters economically in … a real business cycle (RBC) model with habit formation and capital adjustment costs and that neglecting risk leads to …

quality - but also with more competition among suppliers. Both associations hold only for parts involving comparatively … relationships involving higher trust, buyers are able to induce higher investment and more intense competition among suppliers - but …

of savings, precautionary savings, loss aversion, and risk. We provide the relevant theory, followed by empirical tests …

This study examines the effect of smallholder farmers' access to a formal climate risk transfer mechanism on their risk …. Results from the ESP model show that farmers who purchased WICI are less likely to be risk-averse compared with non …-purchaser farmers. Similarly, non-purchasers would have attained a significant reduction in their risk-aversion if they had taken up the …

assumption of (intertemporal) risk neutrality reduces the growth effect in social discounting and significantly amplifies the … importance of risk and correlation. Second, debate and models largely overlook the difference in attitude with respect to risk … and with respect to non-risk uncertainty. The paper derives the resulting changes of the risk-free and the stochastic …