Search results for "Risk aversion"
showing 10 items of 34 documents
A note on comparative downside risk aversion
2005
International audience; We provide comparative global conditions for downside risk aversion, which are similar to the ones studied by Ross for risk aversion. We define a coefficient of downside risk aversion, and study its local properties.
Female leaders and financial inclusion: Evidence from microfinance institutions
2023
This research advances the hypothesis that female leaders – chief executive officers (CEOs), chairs, and directors – of a microfinance institution (MFI) give more priority to the poorest families in loan provision than male leaders do. We differentiate between a depth and a width dimension of financial inclusion. The data set is a unique global panel of MFIs collected from MFI raters’ reports. Our sample is also unique in the sense that about one-third of all MFIs have a female CEO. The problem of endogeneity for the female leader is resolved by running Heckman’s two-step endogenous dummy variable estimation with an instrument for the female leader. We find evidence of greater depth financi…
The COVID‐19 pandemic and government responses: A gender perspective on differences in public opinion
2021
Abstract Objective The 2019 novel coronavirus disease (COVID-19) crisis has led to shutdowns of the cultural, associational, and economic life in many parts of the world and had a severe impact on gender relations in many societies. This study engages with gender differences in public support of severe infringements of personal and economic freedoms. Methods We use data from an original survey conducted by CINT in the United States and Germany in June 2020. Descriptive statistics both aggregated for the two countries and then split by country as well as multinomial logistic regression analyses gauge gender differences in support of COVID-19 related confinement measures. Results Men and wome…
EU income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion
2021
AbstractThe Income Stabilization Tool, a risk management scheme introduced within the Common Agricultural Policy (CAP) 2014–2020, could help European Union farmers manage the income risks they face. This study assesses the potential impact of implementing this tool through the maximum level of contribution to the fund which determines an indifference to participate in the fund and its financial sustainability. The study relies on an expected utility approach and assesses the variability of loss ratios over time using a sample of Italian hazelnut farms as a case study. The participation depends on the level of farmers' contributions and their degree of risk aversion. However, the CAP public …
The Role of Agency Theory and Perceived Goal Divergence in IS Continuance: A Replication and Extension Study
2016
Past literature recognizes the power of the well-established information systems continuance theory (ISCT) to explain information systems (IS) continuance. In this study, we integrate constructs from two additional perspectives and discuss their interdependencies with ISCT. We argue that the promising framework proposed by Sorebo et al. [1], which extends ISCT with self-determination theory (SDT), can increase its managerial relevance by adding the variables of users' perceptions of goal divergence and risk aversion, selected from agency theory. The empirical results support Sorebo et al.'s main findings and strongly support the impact of perceived goal divergence on e-learning continuance …
Gender, self-confidence, sports, and preferences for competition
2016
In the last years, research in economics has shown a gender gap in the willingness to compete with women shying away from competition more than men do. This gender difference in preferences towards competition has been considered a critical factor in explaining the small percentage of women found in top-level positions in business, science, or politics. Therefore, in order to improve women job prospects, research and policy interventions try to offer incentives for women to increase competitive behavior. However, other recent studies specifically point at men¿s competitive behavior as the responsible for some of the financial markets malfunctions, suggesting that an influx of talented women…
Risk aversion in prediction markets: A framed-field experiment
2016
International audience; To make better decisions today, companies and other economic agents are interested in getting accurate predictions of future events. Prediction markets can, at least potentially, give those accurate forecasts for the probability of the event by aggregating information from traders. However, formal studies highlight that the risk attitudes of market participants may bias the market equilibrium prices, and consequently make the prediction unreliable. This research examines the effect of participants' risk attitudes on prediction market prices, through a framed field experiment on the two semifinals at the 2015 NCAA Men's Division Basketball Tournament. The results of t…
Incentive Schemes, Private Information and the Double-Edged Role of Competition for Agents
2013
This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a setting with moral hazard and risk-averse agents, who have private information on their productivity. Two vertically differentiated firms compete for agents by offering contracts with fixed and variable payments. The superior firm employs both agent types in equilibrium, but the competitive pressure exerted by the inferior firm has a strong impact on contract design: For high degrees of vertical differentiation, i.e. low competition, low-ability agents are under-incentivized and exert too little effort. For high degrees of competition, high-ability agents are over-incentivized…
A note on risk aversion and learning behavior
1995
Abstract This paper analyzes the learning behavior of a risk-averse agent. We find two conflicting effects in the experimental behavior: a stronger preference for the ex post reduction in uncertainty, but ex ante the returns to information are more uncertain.
A Problem of Optimization in a Case of Foreign Investment
2000
The aim of the paper is to solve an optimization problem in an economic system with a central bank and a set of private agents. Each agent aims to maximize her expected utility, with rational expectations and being risk averse. The agents follow a profitability-risk criterium to face the portfolio diversification problem between foreign or domestic investment. An explicit formula for the optimal amount of foreign investment as a function of the expected exchange rate and an explicit formula for the exchange rate are obtained. These formulas show the hard influence of the expected exchange rate, the variance and the risk aversion on the agents’ decisions.