The recent observed decline of business cycle variability suggests that broad macroeconomic risk may have fallen as … well. This may in turn have some impact on equity risk premia. We investigate the latent structures in the volatilities of …

and Stiglitz 'model. In this case, we show that the optimal contract exhibits a deductible for the high health risk type … low health risk type. …

of assets with short-selling where there is risk and ambiguity. Agents have Bewley’s incomplete preferences. As an … of the risk adjusted sets of probabilities intersect. The more risk averse, the more ambiguity averse the agents, the …

We study imperfect competition between insurers in a multiple-risk environment. In the absence of asymmetric …

posteriori optimism. This paper finds that financial optimism has a significant positive effect on risk taking behaviour …. Optimistic investors choose risky portfolios over risk-free portfolios for their investments and have higher personal debt …

We define a repairable asset as an irreplaceable commodity whose quality is at risk, but can be partly restored at a …

The theory of existence of equilibrium with short-selling is reconsidered under risk and ambiguity modelled by risk … averse variational preferences. No-arbitrage conditions are given in terms of risk adjusted priors. A sufficient condition … for existence of efficient allocations is the overlapping of the interiors of the risk adjusted sets of priors or the …

We create an analytical structure that reveals the long-run risk-return relationship for nonlinear continuous … eigenfunction term. The eigenvalue encodes the risk adjustment, the martingale alters the probability measure to capture long … components of cash flows induce changes in the corresponding eigenvalues and eigenfunctions, we reveal a long-run risk …

The theory of existence of equilibrium with short-selling is reconsidered under risk and ambiguity modelled by risk … of the risk adjusted sets of expectations overlap. This condition is necessary if agents are not risk neutral at extreme … compatible trades, with non negative expected value with respect to any risk adjusted prior, strictly positive for some agent and …