Although the nonindependence of [??] and [??] precludes our intuition from holding precisely, it does hold under the assumption that relative risk aversion
is larger than unity.
The authors of this study conjecture that the level of risk aversion
of carry traders on the Japanese yen is directly related to the risk aversion
level in overall Japanese financial markets as indicated by Japanese bond default risk spread.
Our matching model is a modified version of Series (2005) who derived the equilibrium relationship between the principal's risk and the power of incentives, whereas we derive the relationship between the agents' risk aversion
(ability) and incentives.
Logistic Regression Results for the Effect of Risk Attitude on Studying Abroad Dependent variable (1) (2) Constant .575 (.559) 3.821 (4.344) Risk aversion
-.262 ** (.119) -.278 ** (.120) Gender .113 (.333) Income .002 (.337) Hometown region -.570 (.387) Graduation year -.123 (.305) GPA -.680 (.517) Pseudo [R.sup.2] .0197 .0439 Note.
On the other hand, human with high risk aversion
aims to set the first priority in minimizing the risk of loss before maximizing the return, i.e.
In estimating risk aversion
, the literature has focused almost exclusively on developed countries.
Our contribution is to establish the link between risk aversion
and maximum possible loss in some classical utility function optimization.
Our analysis shows that opportunity costs of land can make a significant difference to the breakeven prices of biomass from energy crops under both risk neutrality and risk aversion
. Additionally, the relatively higher yield risks associated with energy crop production as compared to corn/soybeans, particularly in the upper Midwest, can result in higher breakeven prices needed to induce risk-averse landowners to convert cropland to energy crops.
dollar fell to its lowest level in around a month near the 100 yen line in Tokyo on Monday, as sharp falls in Japanese shares heightened risk aversion
and drove players to the perceived safety of the yen.
can be approximated by the relative size of expected gains given up for a certain prospect.
The work in  studied a continuous-time mean-variance portfolio optimization model on the assumption that the risk aversion
factor depended dynamically on the current wealth.