Can public insurance through redistributive income taxation improve the allocation of risk in an economy in which … private risk sharing is limited? The answer depends crucially on the fundamental friction that limits private risk sharing in … the first place. If risk sharing is incomplete because some insurance markets are missing for model-exogenous reasons (as …

-household income insurance mechanism strongly biases upward the welfare losses from idiosyncratic wage risk as well as the desired …

standard corporate savings models, a financially constrained firm may behave in a risk seeking sense (and thus firm value may …

value (APV). The risk-free rate of interest must be after-tax. Debt capacity depends on the APV and target debt ratio for … the underlying asset, on the option delta and on the amount of risk-free borrowing or lending that would be needed for …

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 …

college education that mitigate this risk: (i) college students can quit without completing four-year degrees after learning …