Are more risk averse agents more optimistic? Insights from a rational expectations model

Elyès Jouini () and Clotilde Napp

Economics Letters, 2008, vol. 101, issue 1, 73-76

Abstract: 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.

Keywords: Optimism; Risk; aversion; Rational; expectations; Heterogenous; beliefs (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (7)

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