Traditionally banks have used securitization for expanding credit and thus their profitability. It has been well … on their own balance-sheets. Those securities retained included both the high-risk ‘equity’ tranche and the low-risk AAA …-rated tranche. This paper builds a simple model of securitization that accounts for the above retention strategies. Banks in the …

Shocks to bank lending, risk-taking and securitization activities that are orthogonal to real economy and monetary … using a model of bank risk-taking and securitization. … type of shock. Expansionary securitization shocks lead to a permanent rise in real GDP and a fall in inflation. Bank …

We explore the impact of mortgage securitization on the international diversification of macroeconomic risk. By making … mortgage-related risks internationally tradeable, securitization contributes considerably to better international consumption … risk sharing: we find that countries with the most highly developed markets for securitized mortgage debt have consumption …

Banks play a critical role in international trade by providing trade finance products that reduce the risk of exporting …

Under conditions of risk it makes a difference whether the discount rate is determined as an expected present or as an …

We study risk attitudes, ambiguity attitudes, and time preferences of 661 children and adolescents, aged ten to … mass index, are less likely to save money and show worse conduct at school. Experimental measures for risk and ambiguity …

risky labour-market outcomes, adverse selection, moral hazard and risk aversion. The model combines structured student loans … (redistribution). In separating optima, the talented types bear more risk than the less-talented ones; they arise only if the social …

This paper considers how optimal education and tax policy depends on the risk properties of human capital. It is … demonstrated that a key feature of human capital investments is whether they increase or decrease wage risk. In a benchmark model …

The risk of investment in schooling has largely been ignored. We assess the variance in the rate of return by surveying … positively skewed. Our best guess of ex ante risk in university education is a coefficient of variation of about 0.3, comparable …