Empirical measures of world consumption growth risk have failed to rationalize the cross-section of country equity … returns. We propose a new factor, termed "the global consumption factor", to explain the patterns in risk premiums on … from 47 developed and emerging market countries over a four-decade period. Our risk factor reflects changes in the cross …

-Gaussian scaling and infinite-state switching volatility, stock return and cash flow predictability: the role of volatility risk, the … long and the short of the risk-return trade-off, Whatś beneath the surface? option pricing with multifrequency latent … dynamics in commodity spot and futures markets, a stochastic dominance approach to financial risk management strategies …

orientated theories of decision makingunder risk (e.g. prospect theory or regret theory). We discussthe economic relevance of the …This paper experimentally investigates investment behavior.We find that global risk – i.e. risk independent of an agent …’sinvestment decision (like political risk) – substantiallydecreases investment. Also effort to obtain the capital usedfor investment …