. The paper's result formalizes the forces of risk shifting and risk management that shape the form of the corporate pension … portfolio. As in Rauh (2009), the risk-shifting and risk-management incentives increase when a sponsoring company runs into … financial trouble. Unlike Rauh (2009), we show that risk management must not constitute a force countering risk shifting. On the …

arbitrary (but finite) number of projects and the termination time. The optimal policy depends on the projects' risk …-adjusted drifts that are determined by their drifts, volatilities and the curvature (or relative risk aversion) of the agent's payoff … function. We prove that the optimal policy only selects projects in the spanning subset. Further, if the projects' risk …

this company and assume that the company invests its surplus into a riskless and multiple risk assets that are modeled as …

wrong perception of the risk-reward potential of an investment. Additionally, the paper analyzes which representation format … is most likely to encourage investment risk taking that is motivated by a biased risk-reward perception. The results … investment than individuals using bar charts. However, the strongest reduction of biased risk taking is achieved with a bar chart …

then supposed to become larger and more heterogeneous. With respect to the insurer’s risk profile, there is a trade … more important issue that we address. In actuarial practice, the different mortality levels of the several risk classes are … model. We suggest adopting a frailty model for risk classification. We identify risk groups (or classes) within the …

We show how to use panel data on household consumption to directly estimate households’ risk preferences. Specifically …, we measure heterogeneity in risk aversion among households in Thai villages using a full risk-sharing model, which we … then test allowing for this heterogeneity. There is substantial, statistically significant heterogeneity in estimated risk …