Colombia

Income Risk, Precautionary Saving, and Loss Aversion – An Empirical Test

This paper empirically examines the behavioral precautionary saving hypothesis by Kőszegi and Rabin (2009) stating that uncertainty about future income triggers sav- ing because of loss aversion. We extend their theoretical analysis and …

Measuring Utility – An Application to Higher Order Risk and Saving in Bogota

Measuring utility is at the heart of microeconomics and has important applications in many areas of economics. Here we present a new experimental method to elicit utility functions and associated measures of (higher order) risk preferences. The …