In a model with ex-ante homogenous households, earnings risk and a general earnings function, we derive the optimal … (overinvestment) in education due to risk. Education policy unambiguously allows for more social insurance if education is a risky … activity. However, if education hedges against labor market risk, optimal tax rates could be lower than without education …

with the Arrow/Romer approach to endogenous growth to analyze the interaction of risk, growth, and inequality, the latter …. Major results include that growth, inequality, and risk are positively related in our model, but we also identify a hump …-shaped relationship between welfare and risk, indicating a tradeoff relationship between risk-pooling and growth in the determination of …

. In the longer run, however, a trade-off between diversification and climate action emerges. We derive the optimal carbon … price, the equilibrium risk-free rate, and risk premia. Climate disasters, which are more likely to occur sooner as … temperature rises, significantly increase risk premia …

system. Given this backdrop, this study introduces a new measure of energy diversification. It explores its impact on … economic growth with increasing long-run energy diversification. However, some countries (OECD and G20) experience negative … economic growth due to energy diversification in the short term. The results also disclosed that energy diversification does …

The risk of investment in schooling has largely been ignored. We assess the variance in the rate of return by surveying … positively skewed. Our best guess of ex ante risk in university education is a coefficient of variation of about 0.3, comparable …

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

even if the risk-free asset return is correlated with other risky assets' returns. However, equivalence fails to hold on an …

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