Friday, January 9, 2009

Modeling Risk-Aversion

From The Economist of January 8th, a short article ("The Bonds of Time") summarizing research indicating that "people born at different times make very different financial choices, even in similar economic environments."

Perhaps not surprising -- but think about the implications for the modeling of economic and financial behaviors (which in turn will potentially impact future economic and financial conditions). One more level of complexity to be considered...

- Rick

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