investor to hold out. This model shows that the investment decision is based on the portfolio structure, risk aversion and …

-run demand shocks. In this setup, the volatility of a firm's exports depends not only on the diversification of its destination … doubt on the commonly held belief that diversification must decrease volatility …

diversification as an essential aspect of national risk management aimed at promoting efficiency, growth, and welfare. The paper first …Excessive concentration increases national risk in an uncertain world. This paper views economic and political … presents economic and political diversification side by side in a cross-country framework and discusses how they interact and …

different from other oil-rich countries. In five main ways, all of which suggest the need for economic diversification as an … efficient risk management strategy, the Dutch disease manifests itself through (i) An appreciation of the local currency in real … to economic development, including human and social capital. The need for diversification can be viewed in terms of …

-probability extreme events on environmental policy in a continuous-time real options model with “tail risk”. In a nutshell, our results … indicate the importance of tail risk and call for foresighted pre-emptive climate policies …

ex ante identical households and the no-risk case with heterogeneous abilities come out as special cases …

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 …