Published in 2016 in The Journal of Risk and Insurance, Volume 83, Issue 1.
AUTHORS: Jan V. Hansen, Rasmus H. Jacobsen, and Morten I. Lau
ABSTRACT. We estimate the maximum amount that Danish households are willing to pay for three different types of insurance: auto, home and house insurance. We use a… more »
Published in 2017 in Journal of Economic Behavior & Organization, Volume 134.
AUTHORS: Glenn W. Harrison, Jimmy Martinez-Correa, J. Todd Swarthout, and Eric R. Ulm
ABSTRACT: Subjective beliefs are elicited routinely in economics experiments. However, such elicitation often suffers from two possible disadvantages. First, beliefs are recovered in the form of a summary… more »
Published in 2014 in Journal of Economic Behavior & Organization, Volume 101.
AUTHORS: Glenn W. Harrison, Jimmy Martinez-Correa, J. Todd Swarthout
ABSTRACT. We evaluate the binary lottery procedure for inducing risk neutral behavior in a subjective belief elicitation task. Harrison, Martínez-Correa and Swarthout [2013] found that the binary lottery procedure works robustly… more »
Published in 2015 in Journal of Risk & Uncertainty, Volume 50.
AUTHORS: Constantinos Antoniou, Glenn W. Harrison, Morten I. Lau, and Daniel Read
ABSTRACT. A large literature suggests that many individuals do not apply Bayes Rule correctly when making decisions that depend on them correctly pooling prior information and sample data. We… more »
AUTHORS: Linlin Ma and Yuehua Tang
ABSTRACT. This study examines the effects of portfolio manager ownership on the risk-taking behavior of mutual funds. Using both return-based and holding-based risk measures, we find that funds managed by portfolio managers with higher beneficial ownership exhibit lower risk. In particular, using holding-based risk-shifting measure and a… more »
AUTHORS: Steffen Andersen and Kasper Meisner Nielsen
ABSTRACT. We use a natural experiment in Denmark to test the hypothesis that aspiring entrepreneurs face financial constraints because of low entrepreneurial quality. We identify 304 constrained entrepreneurs who start a business after receiving windfall wealth and examine the performance of these marginal entrepreneurs. We find… more »
Published in 2015 in Journal of Economic Behavior & Organization, Volume 119.
AUTHORS: Glenn W. Harrison, Jimmy Martinez-Correa, J. Todd Swarthout
ABSTRACT. The reduction of compound lotteries (ROCL) has assumed a central role in the evaluation of behavior towards risk and uncertainty. We present experimental evidence on its validity in the domain… more »
AUTHORS: Florin Bidian and Camelia Bejan
ABSTRACT. Not-too-tight (NTT) debt limits are endogenous restrictions on debt that prevent agents from defaulting and opting for a specified continuation utility, while allowing for maximal credit expansion (Alvarez and Jermann 2000). For an agent facing some fixed prices for the Arrow… more »
AUTHORS: Camelia Bejan and Florin Bidian
ABSTRACT. Rational bubbles are believed to be fragile and unable to explain the trading frenzy associated to price run-ups. With limited enforcement of credit contracts and endogenous debt limits designed to prevent default and allow for maximal credit expansion, a large class of bubbles can be introduced… more »
Published in 2013 in Journal of Economic Behavior & Organization, Volume 94.
AUTHORS: Glenn W. Harrison, Jimmy Martinez-Correa, J. Todd Swarthout
ABSTRACT. We evaluate the binary lottery procedure for inducing risk neutral behavior. We strip the experimental implementation down to bare bones, taking care to avoid any potentially confounding assumptions about behavior… more »
