Discover how loss aversion affects decision-making and financial behavior in this article. Learn how to overcome its effects ...

Rabin (Econometrica 68 (5): 1281-1292, 2000) argues that, under expected-utility, observed risk aversion over modest stakes implies extremely high risk aversion over large stakes. Cox and Sadiraj ...

For homothetic time and state separable preferences, the coefficient of relative risk aversion (CRRA) is equal to the reciprocal of the elasticity of intertemporal substitution (EIS). This paper shows ...

In the United States, house prices and corporate credit spreads are accurate predictors of GDP growth, outperforming both ...

When the risk aversion parameter is set to 50% of his estimate, the relative cost-effectiveness ratio is 1.13.

Relative Risk Aversion: A measure of an investor's reluctance to engage in risk relative to their wealth, influencing portfolio allocation decisions.

In a theoretical model, Lansing and LeRoy (2011) computed the stock price volatility implied by different levels of risk aversion. Like Shiller, they found that, under risk neutrality, predicted ...