A healthy financial system encourages the efficient allocation of capital and risk. The collapse of the house price … stochastic optimal control (SOC)/dynamic risk management is a much more effective approach to determine the optimal degree of … leverage, the optimum and excessive risk and the probability of a debt crisis. The theoretically founded early warning signals …

capital gain, the return on capital and the interest rate. An optimal debt ratio is derived where the drift is probabilistic … asset. The vulnerability of the borrowing firm to shocks from the capital gain, the return to capital or the interest rate …

) tightness of monetary policy to examine its influence on equity and money market flows. In line with a powerful risk …

this return inequality? I study capital taxation in an economy in which return rates endogenously correlate with wealth …

this return inequality? I study capital taxation in an economy in which return rates endogenously correlate with wealth …

The risk of investment in schooling has largely been ignored. We assess the variance in the rate of return by surveying … alternative options, choosing parameters on basis of the very limited evidence. The distribution of rates of return appears … positively skewed. Our best guess of ex ante risk in university education is a coefficient of variation of about 0.3, comparable …

We develop a novel firm-level measure of cybersecurity risk using textual analysis of cybersecurity-risk disclosures in … corporate filings. The measure successfully identifies firms extensively discussing cybersecurity risk in their 10-K, displays … intuitive relations with quantitative measures of cybersecurity risk disclosure language, exhibits a positive trend over time …