SUPPLY RESPONSES, RISK AVERSION AND COVARIANCES IN AGRICULTURE

Risk Aversion and Supply Chain Contract Negotiation

Comparing Inequality Aversion across Countries When Labor Supply Responses Differ

Comparing Inequality Aversion across Countries When Labor Supply Responses Differ We analyze to which extent social inequality aversion differs across nations when controlling for actual country differences in labor supply responses. Towards this aim, we estimate labor supply elasticities at both extensive and intensive margins for 17 EU countries and the US. Using the same data, inequality ave...

Labor Supply and Risk Aversion: A Calibration Theorem

This paper shows that existing estimates of labor supply elasticities place a tight upper bound on risk aversion in an expected utility model. I derive a formula that relates the coefficient of relative risk aversion (γ) to the ratio of the income elasticity of labor supply to the wage elasticity, holding fixed the degree of complementarity between consumption and leisure. The degree of complem...

Loss Aversion and Labor Supply

Loss Aversion and Labor Supply In many occupations workers’ labor supply choices are constrained by institutional rules regulating labor time and effort provision. This renders explicit tests of the neoclassical theory of labor supply difficult. Here we present evidence from studies examining labor supply responses in “neoclassical environments” in which workers are free to choose when and how ...

Inequality aversion and risk aversion

This note shows that for two inequality averse social welfare functions, if one is more inequality averse than the other, the household preference induced by optimally allocating aggregate bundles according to this social welfare function is more risk averse than the other. We present examples showing that this comparative static can be reversed if inequality aversion is dropped. We show that t...