The late 1990s saw the rise not only of the NASDAQ, the Dow, and the S & P 500, but also of amateur traders—individuals not formally trained to work in the unpredictable world of the stock market—to ...
In dynamic stochastic general equilibrium (DSGE) models, the household’s labor margin as well as consumption margin affects Arrow-Pratt risk aversion. This paper derives simple, closed-form ...
Loss aversion is a psychological phenomenon that refers to the tendency of people to strongly prefer avoiding losses rather than acquiring equivalent gains. In other words, the pain of losing ...