The Role of Risk Aversion in Predicting Individual Behaviour
نویسندگان
چکیده
We use household survey data to construct a direct measure of absolute risk aversion based on the maximum price a consumer is willing to pay to buy a risky asset. We relate this measure to a set of consumers’ decisions that in theory should vary with attitude towards risk. We ...nd that elicited risk aversion has considerable predictive power for a number of key household decisions such as choice of occupation, portfolio selection, moving decisions and exposure to chronic diseases in ways consistent with theory. We also use this indicator to address the importance of self-selection when relating indicators of risk to individual saving decisions. JEL Classi...cation: D1, D8
منابع مشابه
Ambiguous Aversion; A Descriptive Model of Human Behaviour based on Quran
Background and Aim: The current study aimed to investigate "ambiguous aversion behavior" based on Quran explains. The lack of "Descriptive Models of Human Behaviour" (DMHB) is one of the oldest anomalies in behavioral sciences. It's because different scientific demands to understand, predict and control human behavior. Specially, ambiguous aversion that is a common behavior and extremely influe...
متن کاملThe Effect of Personality Characteristics of Capital Market Analysts on Investment Trends, Risk and Return of their Performance
The relationship between finance and other social sciences as known behavioural finance, evaluate investors to the decision-making process and their reaction to different conditions of financial markets deals. In this study assumed that analysts are specialist in fundamental and technical analysis and then influence their personality characteristics is evaluated on their performance. Statistica...
متن کاملEffect of Cognitive Biases on Rationality of Economic Decision Making under Risk among Students of Shahid Beheshti University
The purpose of this study is to determine the quality of individual economic decision making under risk and uncertainty. The research method is a quasi-experiment with single group and a post-test. The total population of the students of Shahid Beheshti University in 97 was 8.700 and due to non-normal distribution, we should use non-parametric Wilcoxon test, with sample of 180. The tool used to...
متن کاملApplication of the theory of planned behaviour in nursing care
Introduction: Nurses are an integral part of the health system and predicting their behavior in different situations is important for policymakers and managers of the health system. The present study was conducted to determine the efficiency of the theory of planned behavior in predicting the behavior of nurses in different situations. Methods: The current narrative review study was conducted ...
متن کاملThe Causal Model of Brand Personality,Risk Aversion and Customer Loyalty
The purpose of this research was to explain the relationship between the personality of brands with risk aversion and customer loyalty. This research was applied in terms of purpose, descriptive correlation one in terms of information gathering and based on structural equation modeling. The statistical population consisted of all customers with credible brands (5 famous and high-income brands s...
متن کامل