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Evolution Heritable Risk, and Skewness Loving

Heller, Yuval; Robson, Arthur - 2019

Our understanding of risk preferences can be sharpened by considering their evolutionary basis. Recently, Robatto and …

Persistent link: https://www.econbiz.de/10015215075

The rigidity of choice: lifetime savings under information-processing constraints

Tutino, Antonella - 2008

This paper studies the implications of information-processing limits on the consumption and savings behavior of households through time. It presents a dynamic model in which consumers rationally choose the size and scope of the information they want to process about their fi�nancial...

Persistent link: https://www.econbiz.de/10015217848

Processing savings and work decisions through Shannon's channels

Tutino, Antonella - 2008

This paper argues that constraining people to choose consumption and labor under fi�nite Shannon capacity produces results in line with U.S. business cycle data as well as secular movements in consumption and labor supply. The model has a simple partial equilibrium setting in which risk averse...

Persistent link: https://www.econbiz.de/10015217849

The importance of precautionary saving motive among Indonesian households

Abdul Jalil, Ahmad Zafarullah - 2009

In the developing world, the population is frequently faced with numerous natural, economic, institutional and market risks. Because of these uncertainties, many individuals and households experience difficult periods of unexpected reduction in income. Using panel data from the Indonesian Family...

Persistent link: https://www.econbiz.de/10015223236

Discounting when income is stochastic and climate change policies

Boyarchenko, Svetlana; Levendorskii, Sergei - 2010

We introduce stochastic income into the standard exponential discounting model and study dependence of effective discount rates on the type of the underlying stochastic process and agent's current income level. If the income follows a process with i.i.d. increments effective discounting is...

Persistent link: https://www.econbiz.de/10015225158

On the stability of risk and time preferences amid the COVID-19 pandemic

Drichoutis, Andreas C.; Nayga, Rodolfo - 2020

We elicited incentivized and stated measures of risk and time preferences from a sample of undergraduate students in … incentivized and stated measures of risk and time preferences were administered to the invited subjects and the wave duration was … then estimated structural parameters for various theories of risk and time preferences from the incentivized tasks and find …

Persistent link: https://www.econbiz.de/10015226050

Concave consumption function and precautionary wealth accumulation

Suen, Richard M. H. - 2011

This paper examines the theoretical foundations of precautionary wealth accumulation in a multi-period model where consumers face uninsurable earnings risk and borrowing constraints. We begin by characterizing the consumption function of individual consumers. We show that consumption function is...

Persistent link: https://www.econbiz.de/10015229278

Evolution and Preference for Local Risk

Heller, Yuval; Robson, Arthur - 2019

Our understanding of risk preferences can be sharpened by considering their evolutionary basis. Recently, Robatto and …

Persistent link: https://www.econbiz.de/10015264727

Disentangling Intertemporal Substitution and Risk Aversion under the Expected Utility Theorem

Lau, Chi-Lei Oscar - 2008

A disturbing feature of the conventional objective function for intertemporal decisions under uncertainty is that the agent's attitudes toward intertemporal substitution and risk aversion are entangled. This paper shows that, in contrast to common perception, the two attitudes can be completely...

Persistent link: https://www.econbiz.de/10015268691

A novel experimental test of truthful bidding in second-price auctions with real objects

Rosato, Antonio; Tymula, Agnieszka - 2022

We present experimental evidence on bidding in second-price auctions with real objects. Our novel design, combining a second-price auction with an individual-specific binary choice task based on the outcome of the auction, allows us to directly identify over and under-bidding. We analyze bidding...

Persistent link: https://www.econbiz.de/10015268991