Are more risk averse agents more optimistic? Insights from a rational expectations model
We analyse a model of partially revealing, rational expectations equilibrium with diverse information, endogenous beliefs formation and uncertain distribution of risk aversion. More risk averse agents are then more optimistic. Such a positive correlation is important for collective decision analysis.
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"Are risk-averse agents more optimistic? A Bayesian estimation approach,"
Journal of Applied Econometrics,
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