Negative income shocks can either be the consequence of risky choices or random events. A growing literature analyzes the role of responsibility for neediness for informal financial support of individuals facing negative income shocks based on randomized experiments. In this paper, we show that...

This paper explores differences in the frequency with which students from different schools reach high levels of math achievement. Data from the American Mathematics Competitions is used to produce counts of high-scoring students from more than two thousand public, coeducational, non-magnet,...

In recent years, many states, including California, Texas, and Oregon, have changed admissions policies to increase access to public universities for students from lower socioeconomic backgrounds. A key concern, however, is how these students will perform. This paper examines the relationship...

This paper examines the impacts of the Michigan Merit Curriculum (MMC), a statewide college-preparatory curriculum that applies to the high school graduating class of 2008 and later. We use a student, longitudinal database for all public school students in Michigan for the main analyses, and...

We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates "standard" risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions - characterized by substantial overweighting of small...

There is growing consensus that the conduct of monetary policy can have an impact on financial and economic stability through the risk-taking incentives of banks. Falling interest rates might induce a "search for yield" and generate incentives to invest into risky activities. This paper provides...

Understanding the reasons why individuals take risks, particularly unnecessary risks, remains an important question in economics. We provide the first evidence of a powerful connection between happiness and risk-avoidance. Using data on 300,000 Americans, we demonstrate that happier individuals...

The standard model of intertemporal choice assumes risk neutrality toward the length of life: due to additivity, agents are not sensitive to a mean preserving spread in the length of life. Using a survey fielded in the RAND American Life Panel (ALP), this paper provides empirical evidence on...

We estimate and decompose family income-related inequality in child health in the US and analyze its dynamics using the income-related health mobility index recently introduced by Allanson et al., 2010. Data come from the 1997, 2002, and 2007 waves of the Child Development Supplement (CDS) of...