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Mutual funds change their risk levels significantly over time. This paper investigates the performance consequences of risk shifting, as well as the economic motivations and the mechanisms of risk shifting. Using a holdings-based measure of risk shifting, we find that funds that increase risk...
Persistent link: https://www.econbiz.de/10012757523
Using 113 staggered changes in corporate income tax rates across U.S. states, we provide evidence on how taxes affect corporate risk-taking decisions. Higher taxes reduce expected profits more for risky projects than for safe ones, as the government shares in a firm's upside but not in its...
Persistent link: https://www.econbiz.de/10013002264
The selection of climate policies should be an exercise in risk management reflecting the many relevant sources of … uncertainty. Studies of climate change and its impacts rarely yield consensus on the distribution of exposure, vulnerability, or … situations, such as evaluating climate policies, where generally agreed-upon probability distributions are not available and …
Persistent link: https://www.econbiz.de/10012938608
major tropical cyclones, using GDP growth damages, government flood-control budgets, and climate-model projections of …
Persistent link: https://www.econbiz.de/10013311024
agriculture. It does so by bridging the extensive literature on climate impacts on yields and physical productivity in global crop …This paper explores the interplay between the biophysical and economic geographies of climate change impacts on … production, with the literature on the economic geography of climate change impacts. Unlike previous work in this area, instead …
Persistent link: https://www.econbiz.de/10012915233
of climate change on sectoral reallocation and aggregate productivity. First, I use firm-level data from a wide range of … heat reduces non-agricultural productivity, but less so than in agriculture, implying that hot countries could adapt to … climate change by importing food and shifting labor toward manufacturing. Second, I embed my estimates in an open …
Persistent link: https://www.econbiz.de/10013307376
uncomfortable. These preferences vary by location due to sorting or adaptation. Changes in climate amenities under business …
Persistent link: https://www.econbiz.de/10013064268
economic effects of future climate change …
Persistent link: https://www.econbiz.de/10013073944
This research explores the origins of loss aversion and the variation in its prevalence across regions, nations and ethnic group. It advances the hypothesis and establishes empirically that the evolution of loss aversion in the course of human history can be traced to the adaptation of humans to...
Persistent link: https://www.econbiz.de/10012907746
literature has implications for the consequence of climate change, and may also provide a partial explanation of why hot …
Persistent link: https://www.econbiz.de/10013023655