Description
The need to understand the theories and applications of economic and finance risk has been clear to everyone since the financial crisis, and this collection of original essays proffers broad, high-level explanations of risk and uncertainty. The economics of risk and uncertainty is unlike most branches of economics in spanning from the individual decision-maker to the market (and indeed, social decisions), and ranging from purely theoretical analysis through individual experimentation, empirical analysis, and applied and policy decisions. It also has close and sometimes conflicting relationships with theoretical and applied statistics, and psychology. The aim of this volume is to provide an overview of diverse aspects of this field, ranging from classical and foundational work through current developments.
Handbook of the Economics of Risk and Uncertainty, 1st Edition
Preface: The Role of Risk and Uncertainty in Economics - Kenneth Arrow
Preface: Risk and Uncertainty in Markets and Policy Contexts - Richard Zeckhauser
Individual Choice under Risk and Uncertainty: Foundations and Measurement
1. Axiomatic Foundations of Expected Utility and Subjective Probability - Edi Karni
2. Rationality and Dynamic Consistency under Uncertainty - Peter Hammond & Horst Zank
3. Theory of Risk and Risk Aversion - Jack Meyer
4. Subjective Probability and Bayesian Beliefs - Mohammed Abdellaoui
5. Assessment and Estimation of Risk Preferences - Charles Holt & Susan Laury
Risk and Uncertainty: Markets and Public Policy
6. Insurance Markets - Georges Dionne and Scott Harrington
7. Uncertainty and Imperfect Information in Markets - Benjamin Hermalin
8. Valuing Individual and Societal Risks - Kip Viscusi
9. Health Risks - Tomas Philipson & George Zanjani
10. Regulation of Safety Risks - Thomas Kniesner and John Leeth
11. Environmental Risk - Richard Carson & Charles Kolstad
12. Catastrophic Risk - Howard Kunreuther & Erwann Michel-Kerjan
Challenges and Responses to the Classical Model of Risk Preferences and Beliefs
13. Non-Expected Utility Models under Objective Uncertainty - John Quiggin
14. Ambiguity and Ambiguity Aversion - Peter Klibanoff & Mark Machina
15. Choice Under Uncertainty: Empirical Methods and Experimental Results - John Hey
16. The Economics of Risk and Uncertainty: Theory, Markets and Public Policy - Mark Machina & Kip Viscusi
