implications of its risk-taking for the wider financial system and real economy. This paper provides empirical evidence for the … existence of widespread risk-taking incentives in the investment fund sector, with a particular focus on incentives for … synchronised, cyclical risk-taking which could have systemic effects. Incentives arise from the positive response of investors to …

We use cross-country microdata to analyse the risk taking of households in Europe and the US. Concerning the extensive … inside Europe we document substantial differences. Furthermore, average risk aversion is strongly correlated with the share … explainable by household characteristics as well as differences in risk aversion and a remainder. We employ the unexplained part …

factor risk model, when augmented with reference returns, is capable of generating visually consistent return distributions …

and the Swiss franc, and are hence less susceptible to crash risk. In line with that, standard pricing factors of …

factor risk model, when augmented with reference returns, is capable of generating visually consistent return distributions …

faster for sectors that have a higher "natural" long-term risk-adjusted growth and which exhibit higher information frictions …