associated with a greater degree of experimentation by investors. Investors respond to financing risk ― a forecast of limited … equilibrium, financing risk disproportionately impacts innovative ventures with the greatest real option value. We propose that …

Cyber risk is an emerging source of systemic risk in the financial sector, and possibly a macro-critical risk too. It … approaches to assess and monitor cyber risk to the financial sector, including various approaches to stress testing. The paper …

monitor managers and make sure they exert the effort necessary to reduce default risk. This gives rise to moral hazard. In …. If these become too high, investors give up on incentives, and default risk rises. Thus, moral hazard gives rise to … endogenous crises and fat tails in the distribution of aggregate default risk. Our model fits the stylized facts of the MBS …

some savers have no risk-sharing motives, there exists a non-negligible set of economies (endowments) and equilibria at …

While the traditional view of financial innovation emphasizes the risk sharing role of new financial assets, belief …. This paper investigates the effect of financial innovation on portfolio risks in an economy when both the risk sharing and … the possibilities for risk sharing. My main result shows that financial innovation also always increases the speculative …