We inject aggregate uncertainty - risk and ambiguity - into an otherwise standard business cycle model and describe its …

We develop a theory of endogenous uncertainty and business cycles in which short-lived shocks can generate long …

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

We identify a shock that explains the bulk of fluctuations in equity risk premia, and show that the shock also explains … contract workers. A real model with labor market frictions and fluctuations in risk appetite can explain all of these facts …, both qualitatively and quantitatively. The size of risk-driven fluctuations depends on the relationship between the …

In this paper we study the neoclassical growth model with idiosyncratic income risk and aggregate risk in which risk … pay off depending on both idiosyncratic and aggregate risk, but limited commitment rules out that households sell these … conditions under which it has lower/higher risk premia than the corresponding representative agent version of the model …

specified in current law. Calculations of expected utility show that these risk reduction techniques can raise expected utility … relative to the plans with no guarantees. The ability to do so depends on the individual's risk aversion level. This underlines … the idea that different individuals would rationally prefer different investment strategies and risk reduction options …