Unbiased Analysis of Today's Healthcare Issues
Many economists over time have tried to measure how risk averse (or risk loving) people are. For instance, some risk averse individuals would prefer having $40 for sure compared to playing a game where if the coin lands heads you get $100 and if the coin lands tails you get $0. Risk averse individuals are…
Let us assume that there are two types of people: smart people an dumb people. Smart people’s test scores are normally distributed about 80% and dumb people’s tests scores are normally distributed about 40% on their test. If we observe the test score of one person, how do we know if they are smart or…
Development economists have long sought the answers as to why new innovations do or do not get implemented in developing countries. Giliches (1957) found that hybrid corn adoption has an S-shaped function over time. Other studies have found that an individual’s social network is the primary determinant of technology adoption. If your friends try out…
Can we estimate risk aversion and prudence using a survey question for the general public? This is what a paper by Eisenhauer and Ventura attempts to do. Methods In the 1995 Survey of Italian Households’ Income and Wealth, one question asked: You are offered the opportunity of acquiring a security permitting you, with the same…