exert a volatility amplifying effect, depending on the currency of denomination and the cyclicality of the borrower … consumption volatility of low- and middle-income countries. On constructing the debt-weighted effective exchange rates, we examine …

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

The equity premium puzzle holds that the coefficient of relative risk aversion estimated from the consumption based … gauge the uncertainty pertaining to the country risk aversion estimates by means of jackknife resampling and pooling. The … confidence band for the world risk aversion estimate from the pooled country data is much tighter and the pooled point estimate …

We develop a financial-economic model for carbon pricing with an explicit representation of decision making under risk … specifications. We show that risk associated with high damages in the long term leads to stringent mitigation of carbon dioxide … emissions in the near term. Our results provide insight into how a systematic incorporation of climate-related risk influences …

This study examines the effect of smallholder farmers' access to a formal climate risk transfer mechanism on their risk …. Results from the ESP model show that farmers who purchased WICI are less likely to be risk-averse compared with non …-purchaser farmers. Similarly, non-purchasers would have attained a significant reduction in their risk-aversion if they had taken up the …