This article uses life insurance data to estimate the Pratt-Arrow coefficient of relative risk aversion for each of nearly 2,400 households. Attitudinal differences toward pure risk are then examined across demographic subgroups. Additionally, differences in speculative risk-taking are examined across demographic groups based on survey responses and compared with the results on pure risk aversion.
Summary
This article describes situations in which regression through the origin is appropriate, derives the normal equation for such a regression and explains the controversy regarding its evaluative statistics. Differences between three popular software packages that allow regression through the origin are illustrated using examples from previous issues of Teaching Statistics.
This paper Integrates three major traditions of economic thought into a model of entrepreneurial decision making. Several testable hypotheses are formulated, and the model Is estimated using a 33-year sample of aggregate time-series data for the U.S.
Statistical methods are increasingly being used to integrate findings from the ever‐expanding universe of empirical research. Meta‐analysis encompasses various techniques for synthesizing summary statistics, and mega‐analysis pools raw data across studies. This paper offers an introduction to meta‐analysis and mega‐analysis that complements the study of analysis of variance (ANOVA). After a brief conceptual discussion, we provide simple numerical examples.
This paper utilizes a thought experiment conducted by the Bank of Italy to estimate absolute and relative risk aversion along with absolute and relative prudence for a broad cross-section of Italian households. Upper and lower bounds are calculated for each parameter, and comparisons are made across socio-demographic groups. Evidence is found of decreasing absolute risk aversion, decreasing absolute prudence, increasing relative risk aversion, and increasing relative prudence
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