. In the longer run, however, a trade-off between diversification and climate action emerges. We derive the optimal carbon … price, the equilibrium risk-free rate, and risk premia. Climate disasters, which are more likely to occur sooner as … temperature rises, significantly increase risk premia. …

between funded and unfunded systems when there are sources of uninsurable risk that are allocated in different ways by …

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 …

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 …

from diversifying their portfolio after experiencing a loan default. This default shock significantly worsens the risk … become available on the platform. Deeper markets also result in a deterioration of investors' risk-return profiles. Third …

high-bracket taxpayers hold relatively safe, unleveraged equities. We discuss the implications of tax-exempts for risk …