Municipal bond markets begin pricing sea level rise (SLR) exposure risk in 2013, coinciding with upward revisions to …-maturity bonds and is not solely driven by near-term flood risk. We use a structural model of credit risk to quantify the implied …

We survey literature on ambiguity with an emphasis on recent applications in macroeconomics and finance. Like risk …, ambiguity leads to cautious behavior and uncertainty premia in asset markets. Unlike risk, ambiguity can generate first order …

We exploit regional variations in exposure to heat stress to study if physical climate risk is priced in municipal and …

shock to the sector - a measure of the systemic risk of each sector. Tail centrality is theoretically and empirically very … downstream closeness to final production. The paper then uses the results to analyze the determinants of total tail risk in the … economy to small shocks while increasing the sensitivity to large shocks. Tail risk is strongest in economies that display …

Urban flooding poses danger to people and places. People can adapt to this risk by moving to safer areas or by … investing in private self-protection. Places can offset some of the risk through urban planning and infrastructure investment …. By constructing a global city data set that covers the years 2012 to 2018, we test several flood risk adaptation …

Financial markets play two roles with implications for the exchange rate: they accommodate risk sharing and act as a … markets can accommodate a significant extent of international risk sharing without leading to the classic exchange rate …