regularities by developing a new firmbased trade model wherein managers are risk averse. Higher volatility induces the reallocation …

We use perturbation methods to derive a rule for the optimal risk-adjusted social cost of carbon (SCC) that … different aversions to risk and intertemporal fluctuations, convex damages, uncertainties in economic growth, atmospheric carbon …-run climate feedbacks. Our non-certainty-equivalent rule for the SCC incorporates precaution, risk insurance, and climate …

percent of mean income. In this paper we use economic theory to determine the relation between the appropriate make …

-form expressions of welfare loss from shocks and epistemological uncertainty identify the interaction of (intertemporal) risk attitude …

economic theory to address this issue. We find that the relation between the appropriate compensation and the mean and median …, as well as the degree of risk aversion. Since the consumption uncertainty associated with compensation generally exceeds …

Common integrated assessment models produce the counterintuitive result that higher risk aversion does not lead to …. The simulations show that aversion to this tipping point risk has little effect. For climate sensitivity of realistic …

intergenerational inequality aversion and for risk aversion. If growth increases (reduces) intra-generational inequality, the SDR is …

We examine asset prices in a representative-agent model of general equilibrium. Assuming only that individuals are risk … averse, we determine conditions on the changes in asset risk that are both necessary and sufficient for the asset price to … incomplete in the sense of containing an uninsurable background risk, such as a risk on labor income. We extend our model to show …

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 …

workers are risk averse but workers more so. Wages are given or partially indexed in the short run, and capital markets are … imperfect. The government sets the exchange rate to allocate risk between workers and owners. With less risk-averse firms, and … greater difference in risk aversion between workers and firms, the optimal exchange rate should vary little with pure terms …