first-order approximated solution built by perturbation methods accounts for risk. We show that risk matters economically in … a real business cycle (RBC) model with habit formation and capital adjustment costs and that neglecting risk leads to …

We study business uncertainty in high- versus low-volatility environments by surveying over 31,000 managers across 41 … their mean absolute deviations. Analogously, we measure realized volatility using absolute forecast errors. We establish two … new facts. (1) Subjective uncertainty and realized volatility both decline with GDP per capita. (2) Managers underestimate …

rate risk shock increases by 63 percent and the contribution of interest rate risk shocks to business cycle volatility more …Jesús Fernández-Villaverde, Pablo A. Guerrón-Quintana, Juan F. Rubio-Ramírez and Martín Uribe (2011) find that risk … than doubles. Hence, risk matters more in the recalibrated model. However, the recalibrated model does worse in capturing …

. The results indicate that persistence is higher at lower frequencies, for both returns and their volatility. This is true …

macroeconomic variables. However, the presence of time-varying risk premia requires an adjustment of market prices to obtain the … estimating risk premia and highlights the proliferation of risk pricing factors that result in a wide range of different asset …-price-based expectation measures. It then describes a key methodological innovation to evaluate the empirical plausibility of risk premium …

The degree of endemic volatility in the number of firms and establishments varies considerably across industries … cross-industry differences in this dimension. Theory suggests several potential factors that might explain this dispersion … of firm volatility across industries: for example, sunk capital costs, uncertainty about profits and technological change …

regularities by developing a new firmbased trade model wherein managers are risk averse. Higher volatility induces the reallocation … are more affected by higher industry-wide expenditure volatility than the least productive exporters. We rationalize these …

We provide benchmarks to evaluate what is an optimal foreign debt and a maximal foreign debt (debt-max), when risk is … capital. We consider two sets of high- risk countries during the period 1978-99: a subset of 21 countries that defaulted on … default risk, and add another dimension to the literature of early warning signals of default/credit risk. …

exert a large and persistent effect on the volatility of stock returns of acquirers and that this response is crucially … - engender a positive response in acquirers' volatility. Our results suggest that acquisitions affect uncertainty because they …