Agenda

13 Mar 2019 12:30

Carlo Fezzi - Risk preferences and subjective beliefs: implications for crop insurance subsidies

Meeting Room 1, Campus San Giobbe, Venezia

Carlo Fezzi, Università di Trento
with Luisa Menapace and Roberta Raffaelli

This paper develops a novel methodology to estimate risk preferences by incorporating individuals' subjective beliefs in the analysis of market insurance data. Unlike previous studies, we refrain from making specific assumptions regarding expectations but elicit them directly from the respondents. This approach yields risk aversion estimates that are compatible with a variety of deviation from rational expectations, such as biased subjective risk perceptions. Our results reveal that the standard assumption of rational beliefs can lead to biased attitudes estimates and related policy recommendations. In addition, our empirical application offers new insights into the current debate on crop insurance subsidization.

Lingua

L'evento si terrà in italiano

Organizzatore

Dipartimento di Economia (EcSeminars)

Link

https://sites.google.com/site/carlofezzihomepage/

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