This paper assesses redenomination risk in the euro area. We first estimate daily default-risk-free yield curves for … redenomination risk from the yield spreads between these two types of bonds. Redenomination risk primarily shows up at the short end … -2% for Germany. The ECB's interventions designed to reduce the risk of a breakup successfully did so for Italy, but …

We compare seven established risk elicitation methods and investigate how they robustly explain eleven kinds of risky … behavior with 760 individuals. Risk measures are positively correlated; however, their performance in explaining behavior is … heterogeneous and, therefore, difficult to assess ex ante. To close this knowledge gap, greater diversification across risk measures …

From standard portfolio-choice theory it is well-understood that background risk, overwhelmingly due to wage risk, is … one of the central determinants of individuals’ portfolio composition: higher background risk reduces risky investments …. However, if background risk is negatively correlated with financial market risk, higher background risk implies more risky …

is negative in all countries except Canada (where it is positive) in the case of bond flows. Under the assumption of risk …