A basic prediction of effcient risk-sharing is that relative consumption growth rates across countries or regions …, employing a newly constructed multi-country and multi-regional data set. Within countries, we find signifcant evidence for risk …. We identify this failure of risk sharing as a border effect. We find that the border effect is substantially (but not …

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 …

information concerning product risk, and mandatory and voluntary disclosure rules are equivalent …

dominate, in that public releases increase uncertainty about fundamentals. In some cases, public releases can create or …

This paper proposes a simple index of the welfare significance of uncertainty in the public goods resulting as policy … function of the coefficient of relative risk aversion, the variance in the measure of environmental service associated with …

accounts for the interaction between temperature, economic growth and risk. The model simultaneously matches the projected … temperature path, the observed consumption growth dynamics, discount rates provided by the risk-free rate and equity market … resolution of uncertainty and long-run impact of temperature on growth imply a significant SCC and motivate early actions to …

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 …

We study the effects of changes in uncertainty about future fiscal policy on aggregate economic activity. Fiscal … consolidation inevitable, there is considerable uncertainty about the policy mix and timing of such budgetary adjustment. To … evaluate the consequences of this increased uncertainty, we first estimate tax and spending processes for the U.S. that allow …