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1 - 10 van 46 voor risk aversion
analyzing labour supply elderly people life cycle approach pdf
... by government welfare programs, stochastic processes for earnings and asset returns, layoff risk, job offer risk, health risk, and mortality risk. ex ante, agents are the same, ex post, agents differ due ... , controlling the strength of the bequest motive, and , measuring the degree to 10 constant relative risk aversion 19 which bequests are a luxury good. that is, an agent leaving a bequest ...
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analysis individual accounts unemployment risk netherlands pdf
... when credit constraints are not that important for the unemployment risk, individual accounts are less interesting for unemployment, but then ... . in the second period individuals run the risk of becoming unemployed. the risk of unemployment consists of an exogenous shock ... with respect to unemployment benefits and on the extent of risk aversion. in the construction of the model we used the following ...
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Dia 1
... 2. insuring idiosyncratic risks - pooling of intragenerational risks, in particular longevity risk - insuring bad luck (at old age) intragenerational distribution why? imperfect insurance ... of payg systems) principle of risk sharing allocate risks according to risk tolerance coefficient of relative risk aversion benchmark perfect solidarity under uniform risk aversion(crra) individuals share equally ...
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disc159.pdf
... line of the paper, that is the intrahousehold interaction. we use a constant relative risk aversion (crra) utility function ...rst as suggested by carroll and samwick (1998), who argue ... (variance term) increases savings. this is achieved through pre- cautionary savings. also a higher risk aversion parameter increases precaution- ary savings. (1 )w 2 embodies the intertemporal saving motive (that ...
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disc160.pdf
... on the timing small wealth effect may be caused by other unobserved effects such as risk aversion. those who are more concerned about a financially secure retirement will retire later and accumulate ...
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discounting investments mitigation and adaptation pdf
... perfectly correlated with wealth. the risk premium corresponding to the level effect is equal to the product of coefficient of absolute risk aversion times the covariance of optimal ... risk premium for temperature. consider an asset whose value is perfectly correlated with temperature. the risk premium corresponding to the level effect is equal to the product of coefficient of absolute risk aversion ...
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Microsoft Word - cpbdoc96
... a consumer's level of risk aversion is found to have a significant influence on product choice in the case of direct purchase. the higher the level of risk aversion, the higher the probability of purchasing a safe product. surprisingly, this relation between risk aversion and product choice is absent in the case of ...
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intergenerational risk sharing pdf
... define risk aversion and the aversion to intertemporal substitution with respect to total consumption, i.e. consumption of goods and leisure. risk aversion and aversion to ... risk aversion (). from equation (3.20) it follows that a higher reward for risk taking increases the intergenerational payments and hence, raises the scope for intergenerational risk sharing. for higher degrees of risk aversion ...
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Microsoft Word - cpbdoc210.doc
... their risk aversion. in turn, this increases their incentive to withdraw their investments from the other borrowers (kyle and xiong, 2001, goldstein and pauzner, 2004). the literature on systemic risk and ... in employing these assets (shleifer and vishny, 1992), or because buying more assets increases risk-aversion (kyle and xiong, 2001). the central question now becomes how fire sales negatively ...
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dp181-risk-adjustment.pdf
... , and r 0 measures the agent's degree of risk aversion. we only consider insurance contracts with q 0, 1 . ... l ), we find 0. we call this first best or efficient risk adjustment. efficient risk adjustment implies that the insurer can optimize the ... all consumers are better off without risk adjustment than with efficient risk adjustment. indeed, the efficient risk adjustment goes in the wrong direction ...
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