|
on Utility Models and Prospect Theory |
| By: | Dirk Oberschachtsiek (Wissenschaftszentrum Berlin für Sozialforschung and Institute of Economics, Leuphana University of Lüneburg, Germany); Britta Ullrich (Institute of Economics, Leuphana University of Lüneburg, Germany) |
| Abstract: | In this study, we investigate the nexus between career risk aversion and unemployment duration based on German survey data (GSOEP). Using a direct measurement of career risk aversion, we do not find a statistically significant linear effect from risk aversion on unemployment duration. However, we find significant effects when controlling for a non-linear or time varying correlation between risk aversion and unemployment duration. Our results show that risk aversion is important when deciding when to leave unemployment. This research takes into account the high complexity involved in how risk aversion enters an individual’s decision process during a job search. |
| Keywords: | unemployment, risk aversion, duration model |
| JEL: | J64 J24 D81 C41 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:lue:wpaper:189&r=upt |
| By: | Huseyin Yildirim |
| Date: | 2010–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:cla:levarc:661465000000000304&r=upt |
| By: | Michael Daly (UCD Geary Institute,University College Dublin and School of Psychology,Trinity College Dublin); Liam Delaney (UCD Geary Institute,School of Economics and School of Public Health & Population Science,University College Dublin); Séamus McManus (UCD Geary Institute,University College Dublin and School of Business & Economics,Maastricht University) |
| Abstract: | This paper examines how attitudes to risk relate to other psychological constructs of personality and consideration of future consequences (a proxy for time preferences) and how risk attitudes relate to credit behaviour and debt holdings. There is a small correlation between risk attitudes and consideration of future consequences. As regards personality, risk attitudes are most positively related to extraversion and openness to experience and are negatively related to neuroticism. Risk willingness is a robust predictor of debt holdings even controlling for demographics, personality, consideration of future consequences and other covariates. |
| JEL: | D81 D12 |
| Date: | 2010–10–28 |
| URL: | http://d.repec.org/n?u=RePEc:ucd:wpaper:201049&r=upt |
| By: | Bas Jacobs; Rick van der Ploeg |
| Abstract: | We analyse optimal carbon taxes, optimal redistribution within and between non-overlapping generations, and optimal spending levels on climate abatement and adaptation. A positive probability of unexpected large increases in CO2 emissions results in a lower discount rate for global warming damages. More prudent governments set higher carbon taxes and spend more on abatement and sacrifice intra-generational for inter-generational redistribution. As long as households spend a constant fraction of their income on polluting goods, the carbon tax is not used for redistribution and is set at the modified Pigouvian rate, which is higher than the Pigouvian rate if governments are prudent. However, the carbon tax is set below the modified Pigouvian rate if poor households spend relatively more on polluting goods than rich households (Stone-Geary preferences). Policy simulations give insights into the effects of changes in the probability of climate disaster, degrees of intra- and inter-generational inequality aversion, ease of substitution between clean and dirty goods, elasticity of labour supply, productivity of abatement and adaptation, population growth and economic growth on the rates of discount, inequality, global warming and social welfare. |
| Keywords: | global warming, intra-generational and inter-generational redistribution, equally-distributed-equivalent utility, social discount rate, prudence, carbon tax, income tax, CO2 abatement, climate adaptation, non-homothetic preferences. |
| JEL: | H21 H23 Q54 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:049&r=upt |