We develop a pair of risk measures, health and mortality delta, for the universe of life and health insurance products …

Developing risk in the life insurance industry requires prudent policy response to prevent broader economic damage. …

This paper examines the macroeconomic implications of sovereign credit risk in a business cycle model where banks are … generates a precautionary motive for banks to deleverage (risk channel). I estimate the model using Italian data, finding that i …) sovereign credit risk was recessionary and that ii) the risk channel was sizable. I then use the model to evaluate the effects …

stockholders bear a disproportionate share of output uncertainty. We do this in the context of a non-Walrasian RBC model where risk … reallocation is justified by borrowing restrictions. The risk shifting mechanism we propose has the same effect as would arise from … a substantial increase in the risk aversion parameter of the representative agent. As with more standard RBC models, it …

This paper develops a dynamic continuous-time model in which international risk sharing can yield substantial welfare …

model is used to study the allocation of risk and the distribution of income over the business cycle. …

, financial institutions fail to internalize risks their investments impose on society, thereby creating a “risk externality ….” This paper proposes that just as taxes are imposed to deal with pollution externalities, taxes can also address risk … externalities. ; The size of the optimal tax depends on risk-related attributes and may be difficult for supervisors to calculate …

Concerns about constructing and maintaining good reputations are known to reduce borrowers' excessive risk …