To make high-quality research more accessible and easier to explore.

Fields:

An Operational Measure of Riskiness

Journal of Political Economy 2009 117(5), 785-814
We propose a measure of riskiness of “gambles” (risky assets) that is objective: it depends only on the gamble and not on the decision maker. The measure is based on identifying for every gamble the critical wealth level below which it becomes “risky” to accept the gamble.