The principal-agent model of executive compensation is of central importance to the modern theory of the firm and …

of consumption insurance against shocks to male and female wages, as estimated empirically by Blundell, Pistaferri and … consumption, compared to the empirical estimates of 32% and 19%. Most of the consumption insurance against permanent male wage …-household income insurance mechanism strongly biases upward the welfare losses from idiosyncratic wage risk as well as the desired …

Firms hiring fresh graduates face uncertainty on the future productivity of workers. Theory suggests that starting … wages reflect this, with lower pay for greater uncertainty. We use the dispersion of exam grades within a field of education … as an indicator of the unobserved heterogeneity that employers face. We find solid evidence that starting wages are lower …

the insurance sector. The downside risk of insurers is explicitly modelled by common and idiosyncratic risk factors. Since … results point to a relatively low insurance sector wide risk. Dependence among insurers is higher than among reinsurers. …

We propose and test a theory of corporate liquidity management in which credit lines provided by banks to firms are a … form of monitored liquidity insurance. Bank monitoring and resulting credit line revocations help control illiquidity … because the cost of monitored liquidity insurance increases with liquidity risk. We exploit a quasi-experiment around the …

illness can significantly increase the value of statistical life, helping to reconcile theory with empirical findings that …

channels of insurance? Third, how does idiosyncratic risk interact with aggregate risk? …

against non-diversifiable labor income risk. We then use our our theory to link openness to trade to the level of …