variables. This class contains a variety of models that are useful for modeling intertemporal household decisions under risk …

a revival of interest in the effect of risk on economic growth. We quantify both ex ante and ex post effects of risk …-running panel data set for rural households in Zimbabwe. We find that risk substantially reduces growth: in the ergodic distribution … the mean (across households) capital stock is 46% lower than in the absence of risk. This is, we believe, the first micro …