to the model despite the significant nonlinearities that are absent in the economy with uninsurable labor income risk …. The model is capable of generating the average private equity premium of roughly 3 percent and a low risk-free rate. The … model also produces procyclicality of the risk-free rate and countercyclicality of the average private equity premium. The …

risk hazard regressions on the outcomes of the loans. The authors show that when the expected unemployment risk of … dynamic adverse selection that can worsen the risk characteristics of new lending, and suggests another avenue by which the …

This paper explores whether there was an economically significant differential in market-based risk between bank … participated in investment banking exhibited significantly lower total and unsystematic risk, suggesting that banks’ participation … systematic risk. …

The author examines the impact of incomplete risk-sharing on growth and welfare. The source of market incompleteness in … the economy is private information: a household's idiosyncratic productivity shock is not observable by others. Risk …-sharing between households occurs through long-term contracts with intermediaries. The author finds that incomplete risk-sharing tends …

share risk is constrained by the market. This can be beneficial because intermediaries invest less in the productive … technology when they provide more risk-sharing. Our model predicts that bank-oriented economies should grow slower than more …

efficient risk-sharing, negatively correlated with relative consumptions across countries. This paper shows that a model with … incomplete markets and a low price elasticity of imports can account for these properties of real exchange rates. The low price … international transmission of productivity shocks generate the observed degree of risk-sharing: one associated with an improvement …

financial capital so that it can logically serve as a cushion against insolvency for potentially risk-averse managers and as a … signal of risk for less informed outsiders. This allows scale economies to be computed without assuming that the bank chooses … authors find evidence that bank managers are risk averse and use the level of financial capital to signal the level of risk …