This paper analyzes the implications of alterative risk assumptions for estimates of the distorting effects of the … risk assumptions. Results indicate that assessments of the relative importance of these distortions are sensitive to … alterative risk assumptions used in marginal tax rate calculations. The paper also explores the sensitivity of results to key …

Auerbach-Jorgenson first year recovery plan is not equivalent to indexing as is often claimed, if uncertainty about inflation … implies uncertainty about the real after-tax discount rate …

We develop a macroeconomic model with physical and human capital, human capital risk, and limited contract enforcement …. We show analytically that young (high-return) households are the most exposed to human capital risk and are also the … least insured. We document this risk-insurance pattern in data on life-insurance drawn from the Survey of Consumer Finance …

Insurance induces a well-known tradeoff between the welfare gains from risk protection and the welfare losses from … the tradeoff simultaneously, allowing for a relationship between moral hazard and risk protection. An important feature of …, and stoplosses that alter moral hazard as well as risk protection relative to no insurance. I illustrate the properties of …

activities. This paper demonstrates that uncertainty may induce similar costs. This argument is illustrated in the context of … and intermediate products used in domestic production. The present paper shows that uncertainty acts as an implicit tax on …, uncertainty inhibits the formation of new activities. Unlike the tariff, however, uncertainty does not benefit the government with …

a sticky-price alternative to Lucas's (1982) exchage rate risk premium model. We show that the level risk premium' in …

International consumption risk sharing studies have largely ignored their models' counterfactual implications for asset … returns although these returns incorporate direct market measures of risk. In this paper, we modify a canonical risk … variance of equity returns and the risk-free rate requires persistent consumption risk, leading to three main findings: (1 …