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 …

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

changes in bond spreads over the sample, global market risk factors are fundamental driving forces during periods of stress …. The relative importance of the different risk factors changes substantially depending on the crisis episode. Contagion …

phenomenon. In addition to risk aversion, equity premium may reflect ambiguity aversion. We explore the sources of equity premium … using some pertinent fundamental independent variables, as well as the World Bank institutional quality indexes and other … proxies for the degree of ambiguity in the sample countries. Some World Bank and other indexes are statistically significant …

Lockdowns imposed around the world to contain the spread of the COVID-19 pandemic are having a differential impact on … jobs are most at risk. We estimate that over 97.3 million workers, equivalent to about 15 percent of the workforce, are at … high risk of layoffs and furlough across the 35 advanced and emerging countries in our sample. Workers least likely to work …