Recent papers by Cox and Sadiraj (2006) and Rubinstein (2006) have pointed out that expected utility theory is more general than has sometimes been acknowledged, and can hence not be refuted as easily by means of experiments. While acknowledging this fact, this note nevertheless demonstrates...

The calibration theorem by Rabin (2000) implies that seemingly plausible smallstake choices under risk imply implausible large-stake risk aversion. This theorem is derived based on the expected utility of wealth model. However, Cox and Sadiraj (2006) show that such implications do not follow...

This paper reports results from an economic experiment where respondents are asked to make choices between risky outcomes for themselves and others. In addition, we elicit information about the respondents’ perception of others risk preferences. We investigate whether subjects’ own risk...

Using a sample of 2,789 Swedish residents on working age, this paper analyzes long-term absences from work due to sickness. The database contains all compensated sickness spells in the period January 1986 to December 1991. Earlier studies of work absence due to sickness did not analyze multiple...

In recent years, a growing number of authors have turned their focus to the question of why children work. While much of the research focuses on household level factors, macroeconomic factors have gained increasing attention. This is particularly true in the case of globalization. The purpose of...

Long-term absenteeism due to sickness has been increasing in the past two decades. This has raised many questions about causes, financing, and policy measures to prevent further increases. Answering these questions is even more important in a society with an aging population, which is expected...

This paper uses data from a firm with team production to investigate the association between workers’ productivity, risk aversion and preferred bonus scheme (team or individual). The economic model makes a strong prediction in this case. Workers who produce more than the team average should...

This paper investigates dynamic peer effects in a sales company where workers operate in teams and receive a bonus that depends on both individual worker and team sales. We examine how the past productivity of co-workers affects the current individual performance of team members. To address this...

Using a longitudinal data for about 1800 persons observed between 1986 and 1991, this study investigates the incentive effects on short-term sickness spells of two important regime changes in the social insurance system in Sweden implemented in 1987 and 1991. The results indicate that the rules...