Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry …

We develop a method to estimate domain-specific risk. We apply the method to sickness insurance by fitting a utility … risk aversion increases with income. Second, marginal utility is higher in the sick state conditional on income, due to an … observed fixed cost of sickness. Third, the domain-specificity of risk shifts the focus on the smoothing of utility, not …

We study general equilibrium asset prices in a multi-period endowment economy when agents' risk aversion is allowed to … depend on the maturity of the risk. We find horizon-dependent riskaversion preferences generate a decreasing term structure … of risk premia if and only if volatility is stochastic. Our model can thus justify the recent empirical results on the …

maintain an optimal balance among risk, return, and investor preferences. To analyze various portfolio variants, we use data on … portfolio adjustments. Portfolios with short-term horizons with less risk-averse investors and those for generation Z are the …