voting decisions. Thus, risk neutral individuals exhibit what we call political risk aversion. Yet individual uncertainty is …

explores how much of these large movements reflected shifts in (i) global risk aversion (ii) country-specific risks, directly … in the crisis, the surge in global risk aversion was a significant factor influencing sovereign spreads, while recently … Spain, as the emphasis has shifted towards short-term refinancing risk and long-term fiscal sustainability. The paper …

Investors seek to hedge against interest rate risk by taking long or short positions on bonds of different maturities …. We study changes in risk taking behavior in a low interest rate environment by estimating a market stochastic discount … literature. We provide evidence that non-linearities arise from hedging strategies of investors exposed to interest rate risk …

2009, hedging of currency risk substantially reduced the volatility of foreign investments at a quarterly investment … hedging for risk reduction purposes remained strong.In addition to its impact on risk, hedging affected returns in …

phenomenon. In addition to risk aversion, equity premium may reflect ambiguity aversion. We explore the sources of equity premium …

This paper uses a dataset on private-sector risk aversion as well as expectations of long-run growth and debt to … modest 1-to-6 basis points. Shocks to growth expectations and risk aversion have been comparatively more successful in …