Microeconomic theory predicts that under certain regularity conditions higher idiosyncratic risk increases the … propensity to insure against independent marketable risks. We apply these predictions to the specific case of labor income risk … and car insurance using data from the UK. The main empirical results are: ? higher labor income risk induces a higher …

considers the evidence on return predictability, risk aversion and market efficiency. The paper then focuses on the theoretical …

This paper investigates the effects of housing price risk on housing choices over the lifecycle. Housing price risk can … ownership and housing wealth as a hedge against future house price risk for individuals moving up the ladder - people living in … places with higher housing price risk should own their first home at a younger age, should live in larger homes, and should …

This paper investigates the effects of housing price risk on housing choices over the lifecycle. Housing price risk can … ownership and housing wealth as a hedge against future house price risk for individuals moving up the ladder - people living in … places with higher housing price risk should own their first home at a younger age, should live in larger homes, and should …

exogenous risk and delegation. That is, we show that only if exogenous risk is sufficiently large, the risk-neutral principal … may prefer to delegate authority over decisions to the risk-averse agent. Intuitively, for incentive reasons, the … principal may optimally want to allow the agent to reduce his risk exposure. Nevertheless, even endogenous risk may be higher …

in the type of degree studied can explain an additional 8.4% of the male-female pay gap. Risk-augmented earnings …