motivate its advent by differences in risk-aversion among agents, implying different prevention efforts. We argue that it may … also appear in the absence of moral hazard, when agents only differ in riskiness and not in (risk) preferences. We first … selection may occur when several contracts are offered, when agents also face a non-insurable background risk, or when agents …

We argue that risk sharing motivates the bank-wide structure of bonus pay. In the presence of financial frictions that … make external financing costly, the optimal contract between shareholders and employees involves some degree of risk … to rationalize with incentive theories of bonus pay - but support an important risk sharing motive. In particular …

with risk and adverse selection, is unable to address issues related to moral hazard. Hence, instead of forcing banks 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 …

We study how background health risk affects financial risk-taking. We elicit financial risk-taking behavior of a … infections across time and space, we find that an increase in infections affecting background health risk translates into higher … financial risk-taking, and for the alleviating effect of self-insurance devices …

Using evidence from Russia, we explore the effect of the introduction of deposit insurance on bank risk. Drawing on … that larger declines in market discipline generate larger increases in traditional measures of risk. These results hold in …