This paper examines how risk in trading activity can affect the volatility of asset prices. We look for this … swap spread tends to converge to a long-run level, although trading risk can sometimes cause the spread to diverge from … that level. -- convergence trading ; interest rate swaps ; swap spread ; repurchase contracts ; trading risk ; volatility …

. Insurance take-up is found to be decreasing in basis risk between insurance payouts and income fluctuations, higher among …-up decisions, and risk averse households are found to be less, not more, likely to purchase insurance. We present evidence …