reducing the risk of trade transactions. This paper employs banking data from the U.S. to document new empirical patterns … intermediate levels of risk. Moreover, they rely more on this instrument in times when funding is cheap and aggregate uncertainty … is high. However, firms do not respond uniformly to changes in global interest rates and risk. Those that ship to high …

consequences. Although risk preferences are likely important, existing research is silent about how social and risk preferences … not exposed to risk while beneficiaries’ final earnings may be larger or smaller than the allocation itself, depending on … the realized state of the world. In a second experiment, risk affects the earnings of givers but not of beneficiaries. We …

Tax administrations use machine learning to predict risk scores as a basis for selecting individual taxpayers for audit … compliance effects of audits among high-risk wage earners. We exploit a sharp audit assignment discontinuity in Norway based on … individual tax payers risk score. Additional data from a random audit allow us to estimate how the audit effect vary across the …

In this paper we use an experiment to compare a theory of risk aversion and a theory of spite as an explanation for … overbidding in auctions. As a workhorse we use the second-price all-pay and the first-price winner-pay auction. Both risk and … spite can be used to rationalize deviations from risk neutral equilibrium bids in auctions. We exploit that equilibrium …

This paper considers how optimal education and tax policy depends on the risk properties of human capital. It is … demonstrated that a key feature of human capital investments is whether they increase or decrease wage risk. In a benchmark model …

Higher-order risk effects play an important role in examining economic behavior under uncertainty. A precautionary … presence of an unavoidable risk affects one's behavior towards a second risk. These two properties also play key roles in …

more attractive for social insurance if a larger part of risk is realized in the first period of the life-cycle. Our …