corporate risk-taking decisions. Higher taxes reduce expected profits more for risky projects than for safe ones, as the … government shares in a firm's upside but not in its downside. Consistent with this prediction, we find that risk taking is … sensitive to taxes, albeit asymmetrically: the average firm reduces risk in response to a tax increase (primarily by changing …

-range probability than is proposed by the expected utility model and risk-seeking behavior over "long-shot" odds is common …

Though risk aversion and the elasticity of intertemporal substitution have been the subjects of careful scrutiny when … temporal resolution of risk matters and a quantitative assessment of how much it matters should be part of the calibration … of risk into the discussion of the quantitative properties of long-run risks and related models …

experiments, we compare people's initial risk-taking plans to their subsequent decisions. Across settings, people accept risk as … part of a "loss-exit" strategy--planning to continue taking risk after gains and stopping after losses. Actual behavior … deviates from initial strategies by cutting gains early and chasing losses. More people accept risk when offered a commitment …

individual beliefs, risk attitudes, and choices for years to come. A growing literature on experience effects shows that …

We conduct experiments eliciting risk preferences with over 1,400 children and adolescents aged 3-15 years old. We … significantly greater risk aversion than adolescent boys. This pattern is not observed among young children, suggesting that the … gender gap in risk preferences emerges in early adolescence. Second, we find that at all ages in our study, cognitive skills …

We present a model of flight to quality episodes that emphasizes systemic risk and the Knightian uncertainty … surrounding these episodes. Agents make risk management decisions with incomplete knowledge. They understand their own shocks, but … question whether their private risk management decisions are robust to aggregate events, generating conservatism and excessive …

Firms face uncertain financing conditions and are exposed to the risk of a sudden rise in financing costs during … issuance, risk management, and payout policies) for a financially constrained firm facing time-varying external financing costs …. The stochastic financing conditions have rich implications for investment and risk management: (1) investment can be …

distributions of risks give rise to components of equilibrium prices that differ from the risk prices widely used in asset pricing …

In absence of insurance contracts to share risk, public information is a double-edged sword. On the one hand, it … empowers self-insurance as agents better react to shocks, reducing risk. On the other hand, it weakens market-insurance as … common knowledge of shocks restricts trading risk. We embody these two faces of information in a single general …