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We consider a matching model in which individuals belonging to two populations (\textquotedblleft males …\textquotedblright\ and \textquotedblleft females\textquotedblright ) can match to share their exogenous income risk. Within each population …, individuals can be ranked by risk aversion in the Arrow-Pratt sense. The model permits non transferable utility, a context in …
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This paper examines the distributional impact of increases to out-of-work transfers, increases to work-contingent transfers, and increases in higher rates of income tax over the whole of life. We find that, in contrast to what is implied by standard snapshot analyses, increases to...
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Do the choices of consumers who search for a product's best price exhibit risk neutral, risk averse or loss averse risk … pay for continued search and the level of price uncertainty depends on her risk preferences. Independent of the current … best price, an increase in price uncertainty encourages continued search when consumers are risk neutral. However, we prove …
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Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry …
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