choose their portfolio risk, bank size, and capital holdings. Banks voluntarily hold equity when the buffer effect against … the risk of default outweighs the cost advantages of debt financing. In the optimum, banks with lower monitoring costs are … to make higher-risk portfolios more attractive. Accounting for banks’ interior capital choices can thus explain why …

, in which sovereign risk is limited through diversification and some form of seniority. These assets would be held by …

We propose and implement a procedure to dynamically hedge climate change risk. We extract innovations from climate news … change hedge portfolios. We discipline the exercise by using third-party ESG scores of firms to model their climate risk … approaches to managing climate risk …

We develop a financial-economic model for carbon pricing with an explicit representation of decision making under risk … and uncertainty that is consistent with the Intergovernmental Panel on Climate Change’s sixth assessment report. We find … specifications. We show that risk associated with high damages in the long term leads to stringent mitigation of carbon dioxide …

can undertake an active portfolio management strategy by investing in both risk-free and risky assets. Using a two …

This paper provides new evidence on the stochastic behaviour of the EPU (Economic Policy Uncertainty (EPU) index …

We estimate a three-variate VAR using proxies of global financial uncertainty, the global financial cycle, and world … industrial production to simulate the effects of the jump in financial uncertainty observed in correspondence of the Covid-19 … outbreak. We predict the cumulative loss in world output one year after the uncertainty shock due to Covid-19 to be about 14% …

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 our study was to examine whether and how deep parameters such as time and risk preferences affect the intention to …-earthquake control) on the effect of natural disasters on time and risk preferences. We find unambiguous effects towards more risk …

This paper studies the impact of corporate acquisitions - both domestic and cross-border - on the uncertainty faced by …-level uncertainty is characterized by a pecking order: the announcement of a domestic takeover leads to a reduction in the uncertainty … - engender a positive response in acquirers' volatility. Our results suggest that acquisitions affect uncertainty because they …