towards risk. We find that the uncertainty associated with anthropogenic climate change imply carbon taxes much higher than …

1996 to 2011 period using exchange rate spot, forward, and option data, we obtain a real-time index of world disaster risk … expected exchange rate depreciations (appreciations) for high (low) interest rate currencies, suggesting that disaster risk is … priced in currency markets. To study the price of disaster risk, we propose a simple structural model that includes both …

because the former allows risk sharing across countries while the latter does not. The analysis is performed in a two …-country overlapping generations model, where markets are incomplete under either exchange regime. In this second best world, it is … demonstrated that the ability to share risk across countries in the fixed rate regime does not necessarily lead to higher welfare …

superior. The intuition is simple: if underlying technologies are not convex, then risk-sharing can lower expected utility. The … simplistic models arguing for financial integration typically employed in economics assume convexity; but the world is rife with … likelihood of a bankruptcy cascade, "contagion," and systemic risk …

government's role in promoting risk sharing. Benefits for each retired person may be tied to that person's lifetime income …

Network, established in 2012, brings together researchers from around the world with access to micro-level data on individual … studies conducted in eleven countries to explore liquidity risk transmission. Among the main results is, first, that … explanatory power of the empirical model is higher for domestic lending than for international lending. Second, how liquidity risk …

accounts for the interaction between temperature, economic growth and risk. The model simultaneously matches the projected … temperature path, the observed consumption growth dynamics, discount rates provided by the risk-free rate and equity market …