process also implies lower welfare costs of earnings risk …

facing uninsurable idiosyncratic labor income risk. The Ramsey government internalizes the general equilibrium feedback of … optimal aggregate saving rate is independent of income risk. The optimal time-invariant tax on capital is increasing in income … risk. Its sign depends on the extent of risk and on the Pareto weight of future generations. If the Ramsey tax rate that …

: (1) financial crisis is unlikely to happen in the near future, and (2) the ultimate risk lies with China's economic …

of higher-order uncertainty. This makes room for forces akin to animal spirits even when the equilibrium is unique. It …

associated with average returns. We show that the resulting portfolios are likely to capture not only the priced risk associated … with the characteristic, but also unpriced risk. We develop a procedure to remove this unpriced risk using covariance …

May 6 – 13, 2020, to understand these risk perceptions. Here we report some preliminary results. Our most striking finding …

stock market volatility, newspaper-based economic policy uncertainty, twitter chatter about economic uncertainty, subjective …We consider several economic uncertainty indicators for the US and UK before and during the COVID-19 pandemic: implied … uncertainty about future business growth, and disagreement among professional forecasters about future GDP growth. Three results …

We propose and implement a procedure to dynamically hedge climate change risk. To create our hedge target, we extract … hedge portfolios. We discipline the exercise by using third-party ESG scores of firms to model their climate risk exposures … managing climate risk …

Common wisdom dictates that uncertainty impedes trade—we show that uncertainty can fuel more trade in a simple general … equilibrium trade model with information frictions. In equilibrium, increases in uncertainty increase both the mean and the … variance in returns to exporting implying that trade can increase or decrease with uncertainty depending on preferences. Under …

The rise of centralized mining pools for risk sharing does not necessarily undermine the decentralization required for …