We extend the canonical income process with persistent and transitory risk to shock distributions with left …-skewness and excess kurtosis, to which we refer as higher-order risk. We estimate our extended income process by GMM for household … show that in a standard incomplete-markets life-cycle model, first, higher-order risk has sizable welfare implications …

We analyze the impact of interim ranking on the risk taking and performance behaviour of professional athletes … of the riskiness of their choices. We present two key findings. First, risk taking exhibits an inverted-U relationship … with rank: risk taking increases up to rank six, but athletes then revert to safer strategies towards the bottom of the …

Mutual fund risk-taking via active portfolio rebalancing varies both in the cross-section and over time. In this paper …, I show that the same is true for funds' off- balance sheet risk-taking, even after controlling for on-balance sheet … information. In the empirical application, I show that German equity funds have increased their risk-taking via synthetic leverage …