In higher education, pure credit market funding leads to underinvestment due to insufficient risk pooling, while pure …

This paper considers a simple model of credit risk and derives the limit distribution of losses under different … losses (EL), and its effect on portfolio risk is ambiguous. But once EL is controlled for, neglecting parameter heterogeneity … leads to overestimation of risk. These results are verified empirically where it is shown that heterogeneity in the default …

of optimal risk-sharing in mortgage contracts. But since only a small literature has studied this question, more research … termination via prepayment or default affects optimal risk-sharing. The broad conclusion of the analysis is that potential … mortgage termination makes higher risk exposure for borrowers optimal …

liquidity risk and characterizes them. Both a solvency (leverage) and a liquidity ratio are required to control the …

empirically show two main findings: first, risk-taking is positively related to the length of tax loss periods because the loss … rules shift some risk to the government; and second, the tax rate has a positive effect on risk-taking for firms that expect …

-Bernanke period only. Focusing on this period, the “risk-management” approach is found to be responsible for monetary policy easings …

This paper explores the introduction of collective risk-sharing elements in defined contribution pension contracts. We … consider status-contingent, age-contingent and asset contingent risk-sharing arrangements. All arrangements raise aggregate …

Banks play a critical role in international trade by providing trade finance products that reduce the risk of exporting …