myopic politicians face political risk and prefer to extract political rents as early as possible. An implication of this …

general-equilibrium theory of exchange rate determination based on the interaction between monetary policy and time … volatility shocks is consistent with the empirical evidence. Furthermore we show that risk factors and interest-rate smoothing …

idiosyncratic risk is higher in industries where the extent of creative destruction is likely to be greater …

We introduce a new, hybrid measure of stock return tail covariance risk, motivated by the under-diversified portfolio … return as in standard systematic risk measures. We document a positive and significant relation between hybrid tail … covariance risk (H-TCR) and expected stock returns, with an annualized premium of 9%, in contrast to the insignificant or …

and to examine two potential explanations of the asymmetry: leverage effects and time-varying risk premiums. Our empirical …

continue to hold even if the coefficient of relative risk aversion approaches zero (that is, even if the marginal utility of … income is constant so that agents are risk neutral in the conventional sense) …

a simple extension of the long-run risk model …