The Role of Risk Aversion and Intertemporal Substitution in Dynamic Consumption-Portfolio Choice with Recursive Utility

2003 ◽  
Author(s):  
Harjoat Singh Bhamra ◽  
Raman Uppal
Keyword(s):  
Risk Aversion ◽  
Portfolio Choice ◽  
Recursive Utility ◽  
Intertemporal Substitution

Ambiguity Aversion and Portfolio Choice in Small-Scale Peruvian Farming

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
James C. Engle Warnick ◽  
Javier Escobal ◽  
Sonia C. Laszlo
Keyword(s):  
Decision Making ◽  
Risk Aversion ◽  
Portfolio Choice ◽  
New Technologies ◽  
Ambiguity Aversion ◽  
Small Scale ◽  
Main Crop ◽  
On Farm ◽  
New Evidence

Abstract While the effect of risk aversion on farmers' decision-making has long been documented, far less is known about the effect of ambiguity aversion. We argue that ambiguity aversion is just as relevant to their decision-making process because they are uncertain about the yield distributions generated by new technologies. By experimentally measuring risk and ambiguity aversion in rural Peru, we provide new evidence on the role of ambiguity aversion on farm decisions in developing countries: ambiguity aversion, not risk aversion, reduces the likelihood that farmers plant more than one variety of their main crop.

Relative Risk Aversion and Portfolio Choice

2005 ◽  
Author(s):  
Pablo Muñoz Ceballos ◽  
Esteban Flores Díaz
Keyword(s):  
Relative Risk ◽  
Risk Aversion ◽  
Portfolio Choice ◽  
Relative Risk Aversion
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