constraint enhances the concavity of firms' hiring rule, generating an endogenous profit-risk premium. In turn, uncertainty … shocks increase the profit-risk premium when the economy operates close to the wage constraint. This implies that higher …

permit estimation using standard Bayesian techniques. Applying our framework to an estimated New-Keynesian business cycle …

We characterize and measure a long-run risk return tradeoff for the valuation of financial cash flows that are exposed … inputs from vector autoregressions to quantify this relationship; and we study the long-run risk differences in aggregate …

, materially heighten the risk of financial crises. Both effects have become stronger in the postwar era …

This paper develops two models, one involving risk neutrality and the other risk aversion, which suggest that inflation … uncertainty affects interest rates. Both models give rise to essentially the same interest rate equation for estimation. Empirical … evidence supports the hypothesis that inflation uncertainty affects interest rates. Interpreted in terms of the risk neutral …

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 …

their empirical counterparts. Our findings suggest that time-varying disaster risk and the many types of uncertainty shocks …