Add to ORKGWe examine evolutionary basis for risk aversion with respect to aggregate risk. We study populations in which agents face choices between aggregate risk and idiosyncratic risk. We show that the choices that maximize the long-run growth rate are induced by a heterogeneous population in which the least and most risk averse agents are indifferent between aggregate risk and obtaining its linear and harmonic mean for sure, respectively. Moreover, an approximately optimal behavior can be induced by a simple distribution according to which all agents have constant relative risk aversion, and the coefficient of relative risk aversion is uniformly distributed between zero and two
A growing body of literature has suggested that agents ’ risk attitudes may not be constant and are ...
We show that even in the absence of data on individual decisions, the distribution of individual att...
We consider an economy where a finite set of agents can trade on one of two asset markets. Due to en...
We examine evolutionary basis for risk aversion with respect to aggregate risk. We study populations...
This paper considers a continuous-time biological model in which the growth rate of a population is ...
Our understanding of risk preferences can be sharpened by considering their evolutionary basis. Rece...
Our understanding of risk preferences can be sharpened by considering their evolutionary basis. Rece...
We develop a dynamic macroeconomic model encompassing heterogeneity in households' attitudes towards...
Risk aversion is one of the most basic assumptions of economic behavior, but few studies have addres...
We propose a single evolutionary explanation for the origin of several behaviors that have been obse...
this paper we explore an evolutionary model where preferences, in particular attitudes toward risk, ...
Abstract — In this paper we investigate how life expectation influences the development of risk atti...
Risk aversion is a common behavior universal to humans and animals alike. Economists have traditiona...
Movements in asset prices are a major risk confronting individuals. This paper establishes new asset...
This paper investigates the role that risk attitudes play in the evolution of conventions in the lon...
A growing body of literature has suggested that agents ’ risk attitudes may not be constant and are ...
We show that even in the absence of data on individual decisions, the distribution of individual att...
We consider an economy where a finite set of agents can trade on one of two asset markets. Due to en...
We examine evolutionary basis for risk aversion with respect to aggregate risk. We study populations...
This paper considers a continuous-time biological model in which the growth rate of a population is ...
Our understanding of risk preferences can be sharpened by considering their evolutionary basis. Rece...
Our understanding of risk preferences can be sharpened by considering their evolutionary basis. Rece...
We develop a dynamic macroeconomic model encompassing heterogeneity in households' attitudes towards...
Risk aversion is one of the most basic assumptions of economic behavior, but few studies have addres...
We propose a single evolutionary explanation for the origin of several behaviors that have been obse...
this paper we explore an evolutionary model where preferences, in particular attitudes toward risk, ...
Abstract — In this paper we investigate how life expectation influences the development of risk atti...
Risk aversion is a common behavior universal to humans and animals alike. Economists have traditiona...
Movements in asset prices are a major risk confronting individuals. This paper establishes new asset...
This paper investigates the role that risk attitudes play in the evolution of conventions in the lon...
A growing body of literature has suggested that agents ’ risk attitudes may not be constant and are ...
We show that even in the absence of data on individual decisions, the distribution of individual att...
We consider an economy where a finite set of agents can trade on one of two asset markets. Due to en...