consumption insurance. Based on insights from a theoretical model, we propose a new test to detect advance information, which … to a significant overestimation of consumption insurance and even more so at the bottom of the wealth distribution. …

, experimentally elicited loss aversion and precautionary savings. We do so using a sample of 640 individuals from the low … theoretical predictions, we find that an increase in income risk is associated with higher savings for loss-averse individuals …, and that this increase in savings grows with the degree of loss aversion. Thus, as suggested by Koszegi and Rabin (2009 …

Building on Prospect Theory, we apply the concept of loss aversion to the formation of inflation perceptions and test …

, and income of the individual. We also estimate a structural model based on Cumulative Prospect Theory and find that the …

A basic tenet of incentive theory states that there is a trade-off between risk and incentives. By implication, greater …

consumption insurance. Based on insights from a theoretical model, we propose a new test to detect advance information, which … to a significant overestimation of consumption insurance and even more so at the bottom of the wealth distribution …

This paper employs numerical simulations of the Park and Sabourian (2011) herd model to derive new theory …