standard methodology for valuing litigation risk. This paper proposes a dynamic real options framework for the valuation of … valuation. This approach offers a novel risk management and valuation tool for a range of stakeholders, including investors …

. Unexpected arrivals elevate extreme-weather risk, which leads households and firms to adapt and thereby lowering the damage of … each subsequent arrival. Our approach provides country-specific estimates of disaster risk as extreme-weather events unfold …

risk, a value that GNI fails to capture. In this paper we use findings from that literature to generate an estimate of …

Higher-beta and higher-volatility equities do not earn commensurately higher returns, a pattern known as the risk … anomaly. In this paper, we consider the possibility that the risk anomaly represents mispricing and develop its implications … for corporate leverage. The risk anomaly generates a simple tradeoff theory: At zero leverage, the overall cost of capital …

(self-protection) or size (self-insurance) of a loss. However, in the case of liability risk, especially physician responses … to malpractice risk, most empirical analyses have focused exclusively on measuring self-protection. This paper studies … larger in areas with higher liability risk, where physicians would have greater incentive to insure against financial risks …

In Merton (1987), idiosyncratic risk is priced in equilibrium as a consequence of incomplete diversification. We modify … results in a state-dependent idiosyncratic risk premium that is higher when average idiosyncratic volatility is low, and vice …