Time-Varying Risk Aversion? Evidence from Near-Miss Accidents

2020 ◽  
pp. 1-45
Author(s):  
Matthew Shum ◽  
Yi Xin
Keyword(s):  
Risk Aversion ◽  
High Frequency ◽  
Insurance Premium ◽  
Near Miss ◽  
Time Varying ◽  
Mobile Phone Application ◽  
Insurance Cost ◽  
Car Insurance ◽  
Increase In Risk ◽  
Unique Dataset

We present evidence consistent with time-varying risk preferences among automobile drivers. Exploiting a unique dataset of agents’ high-frequency driving behavior collected by a mobile phone application, we show that drivers drive more conservatively following “near-miss” accidents. In a preferred specification, a nearmiss triggers a reduction in driving distance of 12.98 kilometers, in-car cellphone use by more than 100%, and highway use by 43.24%. Structural estimation results indicate that such changes in behavior are consistent with an increase in risk aversion of 10.54–43.77% and a reduction in annual insurance cost amounting to 2.04–3.31% of the average car insurance premium.

scholarly journals Frequency variations of gravity waves interacting with a time-varying tide

2013 ◽  
Vol 31 (10) ◽  
pp. 1731-1743 ◽  
Author(s):  
C. M. Huang ◽  
S. D. Zhang ◽  
F. Yi ◽  
K. M. Huang ◽  
Y. H. Zhang ◽  
...  
Keyword(s):  
Gravity Waves ◽  
High Frequency ◽  
Lower Atmosphere ◽  
Horizontal Wind ◽  
Frequency Variation ◽  
Time Varying ◽  
Transient Nature ◽  
Critical Layers ◽  
Favorable Conditions ◽  
Frequency Variations

Abstract. Using a nonlinear, 2-D time-dependent numerical model, we simulate the propagation of gravity waves (GWs) in a time-varying tide. Our simulations show that when a GW packet propagates in a time-varying tidal-wind environment, not only its intrinsic frequency but also its ground-based frequency would change significantly. The tidal horizontal-wind acceleration dominates the GW frequency variation. Positive (negative) accelerations induce frequency increases (decreases) with time. More interestingly, tidal-wind acceleration near the critical layers always causes the GW frequency to increase, which may partially explain the observations that high-frequency GW components are more dominant in the middle and upper atmosphere than in the lower atmosphere. The combination of the increased ground-based frequency of propagating GWs in a time-varying tidal-wind field and the transient nature of the critical layer induced by a time-varying tidal zonal wind creates favorable conditions for GWs to penetrate their originally expected critical layers. Consequently, GWs have an impact on the background atmosphere at much higher altitudes than expected, which indicates that the dynamical effects of tidal–GW interactions are more complicated than usually taken into account by GW parameterizations in global models.

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