This paper considers a world in which pension funds may default, the cost of the associated risk of default is not …

This paper presents a dynamic model of a public pension fund's choice of portfolio risk. Optimal portfolio allocations … public pension fund management, we find evidence that funds chose greater overall asset - liability portfolio risk following …, pension plans take more risk when they have greater representation by plan participants on their Boards of Trustees …

the regimes are small for moderate levels of risk aversion, and the intertemporal hedging demands induced by time …

preference approach to estimate investors' expectations of stock market returns and risk aversion, where we allow investors to … have heterogeneous risk aversion and subjective and potentially biased beliefs. We find that there is substantial variation … in both beliefs and risk aversion across investors and over time, and that both sources of variation help explain …

funding, as is consistent with the corporate financial perspective. We also find some evidence that firms facing higher risk …

influence of ex ante (preventive) and ex post (punitive) risk constraints on the gains to dynamic, as opposed to myopic …, decision making. We find that preventive measures, such as Value-at-Risk constraints, tend to decrease the gains to dynamic …