Since at least T.H. Marshall, scholars have recognized military service as a form of sacrifice that warrants compensation from the state. Indeed, some see the very genesis of the modern welfare state as compensation for wartime sacrifice. War-widow pensions, expansion of the franchise, and...

We study an economy subject to recurrent disasters when agents have imprecise information about the frequency and duration of the disasters. Uncertainty about the persistence of states can lead to seemingly pessimistic behavior in bad times and optimistic behavior in good times. In a disaster,...

We exploit regional variations in exposure to heat stress to study if physical climate risk is priced in municipal and corporate bonds as well as in equity markets. We find that local exposure to damages related to heat stress equaling 1% of GDP is associated with municipal bond yield spreads...