ante risk assessment and derive risk premia for every balance sheet item where liabilities are differentiated according to … priority rights. We find that risk premia reflect both idiosyncratic risk and risk of contagion (network risk). Moreover, we … show that network risk magnifies the gap between the risk premia of equity and debt. We also perform comparative statics …

prices experience a decline due to lower demand caused by the rising uncertainty, while those with sticky prices experience …

of savings, precautionary savings, loss aversion, and risk. We provide the relevant theory, followed by empirical tests …

experiment with 743 subjects whether small-scale, seemingly negligible, events also affect the formation of risk preferences. In … line with a reinforcement learning model, we find that subjects who won a random lottery took significantly more risk in a … was played more than three years after the first lottery. So, small-scale, random, events affect the formation of risk …

low display more tolerance towards risk in a subsequent incentivized lottery task. This effect is mainly driven by … individuals who more firmly believe that life outcomes are beyond their control. This interaction between risk preferences and …

derive a general analytic formula for the “risk premium” governing the resulting climate policy. The formula generalizes … making under uncertainty. It clarifies the distinct roles of risk aversion, prudence, characteristics of the damage … formulation, and future policy response. We show that an optimal response to uncertainty substantially reduces the risk premium …