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We estimate peer effects in risk attitudes in a sample of high school students. Relative risk aversion is elicited from surveys administered at school. Identification of peer effects is based on parents not being able to choose the class within the school of their choice, and on the use of instrumental variables conditional on school‐grade fixed effects. We find a significant and quantitatively large impact of peers' risk attitudes on a male individual's coefficient of risk aversion. Specifically, a one standard deviation increase in the group's coefficient of risk aversion increases an individual's risk aversion by 43%. Our findings shed light on the origin and stability of risk attitudes and, more generally, on the determinants of economic preferences.

Tackling aversions to theory in the social sciences and humanities, this piece unpacks the bad faiths and myopic commentary directed at non-positivist and conceptually driven texts. Drawing on critiques and defenses mounted in the 1980s, 1990s, and the present—alongside exchanges inside and outside the classroom—it mounts an unapologetic defense of theory centering the skillful labors that allow us to compare, argue, distill, critique, abandon, rework, and interpret phenomena. Zeroing in on the empirical and theoretical moves always at play in ethnography, it argues on behalf of the value of allowing lines of thought to carry us obliquely along as much as explicate things. Some closing injunctions around foregrounding what is exciting and nourishing about theory and the pleasures and possibilities of adopting an experimental ethos toward it are put forward.

AbstractWe consider the relationship between emotions and decision‐making under risk. Specifically, we examine the emotional correlates of risk‐averse decisions. In our experiment, individuals' facial expressions are monitored with face reading software, as they are presented with risky lotteries. We then correlate these facial expressions with subsequent decisions in risky choice tasks. We find that a more positive emotional state is positively correlated with greater risk taking. The strength of a number of emotions, including fear, happiness, anger and surprise, is positively correlated with risk aversion.