Emerging markets business cycle models treat default risk as part of an exogenous interest rate on working capital …

We inject aggregate uncertainty - risk and ambiguity - into an otherwise standard business cycle model and describe its …

We develop a theory of endogenous uncertainty and business cycles in which short-lived shocks can generate long …

-generating strategy typically lowers the fund's risk-adjusted excess return due to frictions such as price pressure. When the manager is … via both management and incentive fees, we show that (i) the high-powered incentive fees encourage excessive risk taking … sufficiently poor fund performances substantially curtail managerial risk-taking, provide strong incentives to de-leverage, and …

International risk-sharing has far-reaching implications both for economic policy and for basic research in economics …. When countries do not share risk, individuals in those countries experience fluctuations in their consumption levels that … are undesirable and possibly unnecessary. This paper extends and refines the study of international risk-sharing in two …

enough to approximate Kahnenman and Tversky's prospect theory and that for certain parametric values will yield the expected …

and conditional heteroskedasticity of exchange rates and on the behavior of foreign exchange risk premiums. The model …