A tradition from Knight (1921) argues that more risk tolerant individuals are more likely to become entrepreneurs, but … perform worse. We test these predictions with two risk tolerance proxies: stock market participation and personal leverage … return on assets. The results are similar using personal leverage as risk tolerance proxy. We consider alternative …

The risk of default that business firms face is very significant and differs widely across countries. This paper … explores the links between countries' business conditions and international trade embedment and the default risk at the country … default risk of firms which operate in these environments. The predictions are in accord with readily available data …

We develop a new approach to the decomposition of income risk within a nonstationary model of intertemporal choice. The … approach allows for changes in income risk over the life-cycle and with the business cycle. It requires only repeated cross … decomposing income risk. The approach is used to investigate the changes in income risk in Britain across the inequality growth …

consumption-saving model with labor income risk and incomplete markets to relate income dynamics to consumption and welfare, and …) welfare-neutral. A smaller part of measured income mobility is due to either welfare-reducing income risk or welfare …

model with idiosyncratic labor income risk. In our model economy, even a moderate earnings testing reduces individuals …

stronger distaste for low relative wealth translates into reduced relative risk aversion and, consequently, into riskier … prone to divorce exhibit risk-taking behavior that is more similar to that of single men than married men in environments …