risk of firm default. …

We use a laboratory experiment to identify the impact of risk in the private and public dimensions of social … to others. We find a detrimental effect of risk on public good provision when returns in both dimensions are risky and … positively correlated or independent. A negative correlation limits the downside risk and leads to more stable social investments …

uninsured capital income risk, and suffer from an information-processing capacity constraint. For given attention devoted to … capital income risk, we solve for the optimal consumption-saving choices and show that the expected welfare is increasing with … capacity, assuming a relative risk aversion degree larger than unity. Furthermore, we solve for attention choice and find that …

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 …

This paper considers family formation and reciprocity-based cooperation in the form of sharing of earnings-risk. While … risk sharing is one benefit to marriage it is also limited by divorce risk. With search in the marriage market there may be …

We investigate empirically how industrialized countries and U.S. states share consumption risk at horizons between one … and thirty years. U.S. federal states share about 50 percent of their permanent idiosyncratic risk through cross … share any of their permanent idiosyncratic risk. Our results suggest that purely transaction cost based theories cannot …

Although risk aversion has been used in economic models for over 275 years, the past few decades have shown how higher … order risk attitudes are also quite important. A behavioral approach to defining such risk attitudes was developed by … Eeckhoudt and Schlesinger (2006), based upon simple lottery preference. This article show how the mathematics of lattice theory …

, exposing them to the risk of having to pay a large premium in case they are discovered to have a high probability of developing … a disease (a discrimination risk). Differently, Consent Law allows them to hide this detrimental information, creating …