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Gaballo, Gaetano; Ordoñez, Guillermo - National Bureau of Economic Research - 2021

In absence of insurance contracts to share risk, public information is a double-edged sword. On the one hand, it … common knowledge of shocks restricts trading risk. We embody these two faces of information in a single general …-equilibrium model. We characterize the conditions under which market-insurance is superior, and then public information - even though …

Persistent link: https://www.econbiz.de/10012482704

Adaptation Using Financial Markets : Climate Risk Diversification through Securitization

Kahn, Matthew E.; Ouazad, Amine; Yönder, Erkan - National Bureau of Economic Research - 2024

In the face of rising climate risk, financial institutions may adapt by transferring such risk to securitizers that have the skill and expertise to build diversified pools, such as Mortgage-Backed Securities. In diversified pools, exposure to climate risk may be a drop in the ocean of cash...

Persistent link: https://www.econbiz.de/10014512098

The Flight to Safety and International Risk Sharing

Kekre, Rohan; Lenel, Moritz - National Bureau of Economic Research - 2021

We study a business cycle model of the international monetary system featuring a time-varying demand for safe dollar bonds, greater risk-bearing capacity in the U.S. than the rest of the world, and nominal rigidities. A flight to safety generates a dollar appreciation and decline in global...

Persistent link: https://www.econbiz.de/10012629458

Demand for insurance : choice between safe assets, risky assets and insurance in Japan

Shimono, Keiko - 1989

Persistent link: https://www.econbiz.de/10000124661

The application of monetary policy rules under uncertainty about expectations formations

Stemp, Peter J. - 1992

Persistent link: https://www.econbiz.de/10000851738

Modeling uncertainty : predictive accuracy as a proxy for predictive confidence

Rich, Robert W. (contributor); Tracy, Joseph S. (contributor) - 2003 - [Elektronische Ressource]

Persistent link: https://www.econbiz.de/10001751995

Idiosyncratic risk and volatility bounds, or can models with idiosyncratic risk solve the equity premium puzzle?

Lettau, Martin (contributor) - 2001 - [Elektronische Ressource]

Persistent link: https://www.econbiz.de/10001590071

Policymakers' Uncertainty

Cieślak, Anna; Hansen, Stephen; McMahon, Michael; … - National Bureau of Economic Research - 2023

Uncertainty is a ubiquitous concern emphasized by policymakers. We study how uncertainty affects decision-making by the Federal Open Market Committee (FOMC). We distinguish between the notion of Fed-managed uncertainty vis-a-vis uncertainty that emanates from within the economy and which the Fed...

Persistent link: https://www.econbiz.de/10014436980

One-Sided Limited Commitment and Aggregate Risk

Ando, Yoshiki; Krueger, Dirk; Uhlig, Harald - National Bureau of Economic Research - 2023

In this paper we study the neoclassical growth model with idiosyncratic income risk and aggregate risk in which risk sharing is endogenously constrained by one-sided limited commitment. Households can trade a full set of contingent claims that pay off depending on both idiosyncratic and...

Persistent link: https://www.econbiz.de/10014437034

Growth and Risk : A View from International Trade

Krishna, Pravin; Levchenko, Andrei A.; Ma, Lin; … - National Bureau of Economic Research - 2023

This paper studies the cross-country patterns of risky innovation and growth through the lens of international trade. We use a simple theoretical framework of risky quality upgrading by firms under varying levels of financial development to derive two predictions. First, the mean rate of quality...

Persistent link: https://www.econbiz.de/10014226112