options in defined contribution retirement plans. We document large differences in realized TDF returns and risk profiles … reflects optimal risk-taking by fund families with low market share, especially those entering the market after 2006. Using … plan-level data, we find little evidence that 401(k) plan sponsors match the risk profile of the TDFs in their plans to the …

aggregate risk. We propose a theory to explain these risk exposures. We study a financial accelerator model where entrepreneurs … inefficiently high risk exposure for entrepreneurs …

Can measured risk attitudes and associated structural models predict insurance demand? In an experiment (n = 1,730), we … parameterize seventeen common structural models (e.g., expected utility, cumulative prospect theory). Subjects also make twelve … various risk-attitude measures. Yet all the structural models predict insurance poorly, often less accurately than random …

Taxation and risk taking are examined in a general equilibrium model that incorporates uncertain government revenue in … riskless component of investment returns or to an ex ante wealth tax -- both of which absorb no private risk and yield certain … for behavior (private and total risk taking) and welfare are immediate. Moreover, these results are independent of the …

We analyze the returns to education in a life-cycle framework that incorporates risk preferences, earnings volatility …

trade model with income-risk neutrality there tends to be an uncertainty- increasing motive for a TA. With income-risk … degree of risk aversion, an uncertainty- reducing motive for a TA is more likely to be present when the economy is more open …

I characterize a dynamic economy under general distributions of households' risk tolerance, endowments, and beliefs … consumption-share increases; (b) the wealth-share of high risk-tolerant households increases; (c) richer households' wealth … risk sharing. Higher uncertainty increases stock prices, risk premiums, volatility, wealth inequality and the dispersion of …

that parties take on short OTC positions that lead to levels of default risk that are higher than Pareto-efficient ones. In … particular, OTC markets feature a "counterparty risk externality" that we show can lead to ex-ante productive inefficiency. This … collateral requirements and subordination of OTC positions in bankruptcy can ameliorate the counterparty risk externality, they …

A positive correlation between insurance coverage and ex post risk can be an indicator for private information in … insurance markets. However, this test fails if agents have heterogeneous risk attitudes. We propose a new test that conditions … information without direct evidence of private information - even if agents have heterogeneous risk attitudes. We apply our …