Business cycles reflect changes over time in the amount of trade between individuals. In this paper we show that … incorporating explicitly intra-temporal gains from trade between individuals into a macroeconomic model can provide new insight into … "gains from trade" approach can easily explain why changes in perceptions about the future (including "news" about the future …

execution and the risk is a result of price movements during a more gradual trading. The paper shows that the trade-off between …Transaction costs in trading involve both risk and return. The return is associated with the cost of immediate … risk and return in optimal execution should reflect the same risk preferences as in ordinary investment. The paper develops …

Are fluctuations in firms' profitability risk a major cause of regular business cycles? We study this question within … such a model, surprise increases of risk lead to a wait-and-see policy for investment at the firm level and a decrease in … the size of firm-level risk fluctuations. We find that time-varying firm-level risk on its own is unlikely to be a major …

growth and real exchange rate changes, a key measure of international risk-sharing …

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

refer to this measure of volatility as 'risk'. We find that fluctuations in risk are the most important shock driving the …

uncertainty is robustly countercyclical, rising sharply during recessions, particularly during the Great Recession of 2007 …

The magnitude of and heterogeneity in systematic earnings risk has important implications for various theories in macro …, labor, and financial economics. Using administrative data, we document how the aggregate risk exposure of individual … earnings to GDP and stock returns varies across gender, age, the worker's earnings level, and industry. Aggregate risk exposure …

classes such as corporate and sovereign bonds, derivatives, commodities, and currencies. Our intermediary capital risk factor … is strongly pro-cyclical, implying counter-cyclical intermediary leverage. The price of risk for intermediary capital …