We identify a shock that explains the bulk of fluctuations in equity risk premia, and show that the shock also explains … contract workers. A real model with labor market frictions and fluctuations in risk appetite can explain all of these facts …, both qualitatively and quantitatively. The size of risk-driven fluctuations depends on the relationship between the …

We inject aggregate uncertainty - risk and ambiguity - into an otherwise standard business cycle model and describe its …

We develop a theory of endogenous uncertainty and business cycles in which short-lived shocks can generate long …

Emerging markets business cycle models treat default risk as part of an exogenous interest rate on working capital …