first-order approximated solution built by perturbation methods accounts for risk. We show that risk matters economically in … a real business cycle (RBC) model with habit formation and capital adjustment costs and that neglecting risk leads to …

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

insurance product. We also find that WICI has a positive and statistically significant effect on farmers' real-life risk …This study examines the effect of smallholder farmers' access to a formal climate risk transfer mechanism on their risk … insurance (WICI) in Ethiopia. We use an endogenous switching (ESP) model to address self-selection and simultaneity bias …

, since retrading allows partial insurance of idiosyncratic risk in an incomplete markets setting. This lowers the issuers … idiosyncratic risk rises during recessions, so does the value of the service flows bestowing the safe asset with a negative ß. This …

assumption of (intertemporal) risk neutrality reduces the growth effect in social discounting and significantly amplifies the … importance of risk and correlation. Second, debate and models largely overlook the difference in attitude with respect to risk … and with respect to non-risk uncertainty. The paper derives the resulting changes of the risk-free and the stochastic …

solution. Then we consider a monopoly. Market power affects both output and sugar content, possibly in opposite directions, and …