A large body of evidence has documented that risk preferences depend nonlinearly on
outcome probabilities. We discuss the foundations and economic consequences of …

Behavioral finance tries to make sense of financial data using models that are based on
psychologically accurate assumptions about people's beliefs, preferences, and cognitive …

“Climate Shock could have reasonably been called But Will the People Notice? It'sa
layperson's survey of climate economics, a field that includes cost-benefit analysis and other …

It has been a while since the literature on the pricing kernel puzzle was summarized in
Jackwerth (Option-implied risk-neutral distributions and risk-aversion, The Research …

Abstract In August 2007, the Office of Best Practice Regulation (then part of the Productivity
Commission) published its Best Practice Regulation Handbook, containing guidelines …

За класичною економічною теорією, люди діють раціонально. Та й самі ми схильні
думати, що ухвалюємо рішення з максимальною вигодою для себе. Однак нашим …

Framing effects are everywhere. An estate tax looks very different to a death tax. Gun safety
seems to be one thing and gun control another. Yet, the consensus from decision theorists …

We study the term structure of variance swaps, equity and variance risk premia. A model-free
analysis reveals a significant price jump component in variance swap rates. A model-based …

We study how and to what extent private households are affected by the recent financial
crisis and how their financial decisions are influenced by this shock. Our analysis reveals …

Myopic loss aversion (MLA) has been proposed as an explanation for the equity premium
puzzle, and experiments indicate that investors exhibit behavior consistent with MLA. But a …