towards increasing the opportunities for speculation rather than risk sharing …While the traditional view of financial innovation emphasizes the risk sharing role of new financial assets, belief … disagreements about these assets naturally lead to speculation, which represents a powerful economic force in the opposite direction …

We provide a continuous-time “risk-centric” representation of the New Keynesian model, which we use to analyze the … interactions between asset prices, financial speculation, and macro- economic outcomes when output is determined by aggregate … heterogeneous asset valuations) matter because they induce investors to speculate. This speculation exacerbates the crash by …

reports on direct measures of preference parameters relating to risk tolerance, time preference, and intertemporal … of preference parameters display substantial heterogeneity. The majority of respondents fall into the least risk …-tolerant group, but a substantial minority display higher risk tolerance. The individual measures of intertemporal substitution and …

due to risk-sharing. But when it is large, expected return initially increases but then decreases with beta. High beta …

crude oil, but our approach can be appliedto other commodities. We explain the meaning of "oil price speculation," how it …). Turningto the data, we calculate counterfactual prices that would have occurred from 1999 to 2012 in the absenceof speculation … commodity. It lets us determine whether speculation is consistentwith data on production, consumption, inventory changes, and …

common practice of categorically classifying trading by hedgers as hedging while trading by speculators as speculation, as … speculation …