: financial risk and environmental risk. The analysis is carried out using time series data for six advanced economies in the … period 1965-2007. The results support the theoretical conclusions that both financial risk alone and the interaction between … empirical analysis performed with one-argument utility functions. Finally, we provide new estimates of indexes of relative risk …

: financial risk and environmental risk. The analysis is carried out using time series data for six advanced economies in the … period 1965-2007. The results support the theoretical conclusions that both financial risk alone and the interaction between … empirical analysis performed with one-argument utility functions. Finally, we provide new estimates of indexes of relative risk …

saving motive by eliciting subjective expectations on future consumption. We find that expected consumption risk is higher … for the young and the self-employed, and is correlated positively with income risk. We insert these subjective … estimate the degree of prudence by associating expected consumption risk with expected consumption growth. Robust OLS and IV …

saving motive by eliciting subjective expectations on future consumption. We find that expected consumption risk is higher … for the young and the self-employed, and is correlated positively with income risk. We insert these subjective … estimate the degree of prudence by associating expected consumption risk with expected consumption growth. Robust OLS and IV …

saving motive by eliciting subjective expectations on future consumption. We find that expected consumption risk is higher … for the young and the self-employed, and is correlated positively with income risk. We insert these subjective … estimate the degree of prudence by associating expected consumption risk with expected consumption growth. Robust OLS and IV …

Using detailed micro-data, this paper documents that households with lower income risk (and higher income levels … designed to account for the empirically observed negative correlation between income levels and income risk. This interaction … generates saving dynamics such that the stationary distribution of wealth among households facing different risk levels is not …

Microeconomic theory predicts that under certain regularity conditions higher idiosyncratic risk increases the … propensity to insure against independent marketable risks. We apply these predictions to the specific case of labor income risk … and car insurance using data from the UK. The main empirical results are: - higher labor income risk induces a higher …

Microeconomic theory predicts that under certain regularity conditions higher idiosyncratic risk increases the … propensity to insure against independent marketable risks. We apply these predictions to the specific case of labor income risk … and car insurance using data from the UK. The main empirical results are: - higher labor income risk induces a higher …

. Specifically, this paper empirically tests if prospect theory's loss aversion decreases insurance demand and increases savings …This paper investigates how loss-aversion affects individuals' decisions on savings and insurance purchase … demand. Prospect theory predicts that boundedly rational consumers may view pure protection insurance, such as term …