commensurate with their risk aversion; more risk-averse individuals pick lower-volatility stocks. The investors' portfolio …The preferred risk habitat hypothesis, introduced here, is that individual investors select stocks with volatilities … consistent with the predictions of the hypothesis: the portfolios contain highly similar stocks in terms of volatility, when …

both create and share the risk associated with exchange rate volatility. In such circumstances, monetary policy can be used … of noise traders alters the composition of the market and generates excess exchange rate volatility, since noise traders … to lower exchange rate volatility without altering macroeconomic fundamentals. …

shocks. Financial institutions can only obtain their funds by paying an interest rate above the risk-free rate, and this risk …

volatility of revenues, have failed to save a sufficiently high proportion of their resource revenues and failed to make high …

velocity volatility at both business cycle and long run frequencies. With filtered velocity turning negative, starting during …

reveal that higher margins have a much stronger negative relation to subsequent volatility in bull markets than in bear … systemic risk. These empirical regularities are consistent with the pyramiding-depyramiding framework of stock prices that US …

forward premia on monthly exchange rate returns in a framework that allows for volatility timing. We implement Bayesian … methods for estimation and ranking of a set of empirical exchange rate models, and construct combined forecasts based on … of the empirical models, and find two key results: (i) a risk averse investor will pay a high performance fee to switch …

Cross-country evidence is presented on resource dependence and the link between volatility and growth. First, growth … depends negatively on volatility of unanticipated output growth independent of initial income per capita, the average … growth. Second, the adverse effect of resources on growth operates primarily through higher volatility. The positive effect …

new panel database for 35 countries, this paper estimates the impact of terms of trade volatility and secular change on … country performance between 1870 and 1939. Volatility was much more important for accumulation and growth than was secular …