Most decisions concerning (self-)insurance and self-protection have to be taken in situations in which a) the effort … under which ambiguity aversion raises the demand for (self-)insurance and self-protection. In particular, it is shown that … ambiguity prudence known as decreasing absolute ambiguity aversion (DAAA) is sufficient to give a clear and positive answer to …

reduction (self-protection) so that correlation becomes endogenous. If prevention concerns only one risk, introducing a second … exogenous risk increases the level of prevention expenditures, even if correlation is negative. If prevention expenditures may … increased dependence increases aggregate prevention expenditures, but not necessarily prevention expenditures for each risk due …

preferences. Full insurance cannot be rejected. As the risk-sharing as-if-complete-markets theory might predict, estimated risk …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 …

coefficient of relative risk aversion (CRRA) that is commensurate with a 100% investment in the risky asset is simulated. The …

an increase in ambiguity is associated with increased investor activity. It also leads to a reduction in risk …

a bounded utility function, we show that in a standard two-period setting, prudence is no longer sufficient to ensure a … infinity, we find that prudence is not anymore not anymore necessary to induce a more conservationist extraction policy and … risk aversion is sufficient. These results highlight the importance of the specification of the utility function and its …

data with a broad class of models of choice under risk and under uncertainty. Our method allows for risk loving and elation …