relative to that of government employees before and after the reform provides a clean identification of income uncertainty that … occupational choices and we disentangle the effects of uncertainty from pessimistic outlook. We obtain evidence that precautionary …

We study the macroeconomic effects of uncertainty shocks in a DSGE model with labor search frictions and sticky prices …. In contrast to a real business cycle model, the model with search frictions implies that uncertainty shocks reduce … potential output, because a job match represents a long-term employment relation and heightened uncertainty reduces the value of …

A fixed-rate deposit insurance system provides a moral hazard for excessive risk taking and is not viable absent … turn, caused banks to- increase default risk through increases. in asset risk and reductions in capital. This hypothesis is …

probability of bank failure and the risk exposure of the deposit insurance fund. On the other hand, the utility … asset risk and can increase the probability of bank failure. ; In this paper, we show that this seeming inconsistency stems …

from their stock (and bond) prices would take less risk than non-publicly traded banks because counterparties, borrowers …, and regulators could react to adverse public market signals against publicly traded banks. In comparing the credit risk …, earnings risk, capitalization, and failure risk between publicly traded and non-publicly traded banks, the evidence in this …