effects on technological progress and welfare, which depend critically on the risk sharing capacity of the economy's financial … system. For example, we show that with efficient risk sharing more precise information adversely affects the equilibrium risk …

This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for …

asset allocations by insurance and pension funds to prevent excessive risk taking. The development of derivatives markets in …, supporting capital inflows and helping market participants to price, unbundle and transfer risk. There are tight regulations on …. Theiroverdependence on bank credit as a source of funding could be reduced and their management of seasonal risk could be improved through …

policy and setting of the risk tolerance level in order to ensure consistent risk-bearing capacity and greater accountability …

During risk-off episodes, the yen is a safe haven currency and on average appreciates against the U.S. dollar. We … investigate the proximate causes of yen risk-off appreciations. We find that neither capital inflows nor expectations of the … participants’ risk perceptions trigger derivatives trading, which in turn lead to changes in the spot exchange rate without capital …

Why do many households remain exposed to large exogenous sources of non-systematic income risk? We use a series of … innovative rainfall insurance product. Demand is significantly price sensitive, but widespread take-up would not be achieved even … if the product offered a payout ratio comparable to U.S. insurance contracts. We present evidence suggesting that lack of …