and Liquidity Protection Are Different
Hypothesis: The likelihood of self-insurance is positively related to risk aversion
(as proxied by a lower deductible).
A slight easing in extreme risk aversion
this week has allowed sterling some breathing space from investor deleveraging, leaving the pound on track for its biggest weekly percentage gain since late 2006.
which measures the absolute slope of a given indifference curve and is diminishing due to the assumption of risk aversion
(U"(I) < 0).
Individuals who were unwilling to accept any income gambles should have a larger coefficient of risk aversion
than those who accepted income gambles.
The new paper, "Gender differences in financial risk aversion
and career choices are affected by testosterone," has been published in the August 24, 2009 early edition of the Proceedings of the National Academy of Sciences (PNAS).
That the effects of testosterone on risk aversion
are strongest for individuals with low or intermediate levels of this hormone is similar to what has been shown for the effects of testosterone on spatial cognition.
6746 as an increase in risk aversion
and news that first quarter GDP contraction was larger than expected at 2.
for moderate and high probabilities is a factor in probability discounting studies because the procedures typically ask for choices in one-shot situations where there is a possibility of receiving nothing.
In his recent speech the Prime Minister Tony Blair echoed the sentiment of his colleague Gordon Brown regarding the potentially damaging impact that risk aversion
can have on business.
To be published six times a year, Applied Financial Economics Letters is a companion journal to T&F's Applied Financial Economics and publishes short accounts of new financial and economic research on such topics as hedging, spot-futures markets, stock prices as predictive tools, risk aversion
, competition, identification of currency crises and interest rate options.
It left a hangover of risk aversion
that many are still trying to shake.