shows that small to medium-sized increases in uncertainty or risk aversion are enough to recommend an expansion of the …

This paper constructs a tractable general equilibrium model of search with risk-aversion. An increase in risk … hazard: insured workers seek high wage jobs with high unemployment risk. An economy with risk-neutral workers achieves … maximal output without any UI. In contrast, in an economy with risk-averse workers, a positive level of UI maximizes output …

Over the last twenty years, the consensus view of systemic risk in the financial system that emerged in response to the … banking crises of the 1930s and before has lost much of its relevance. This view held that the main systemic problem is runs … facing financial institutions. The dramatic rise of modern risk management has changed how the risks of financial …

This paper provides an empirical analysis of the risk of trading revenues of U.S. commercial banks. We collect … quarterly data on trading revenues, broken down by business line, as well as the Value at Risk-based market risk charge. The … across business lines. These low correlations do not corroborate systemic risk concerns. Neither is there evidence that the …

-sectional differences in response to liquidity risk depend on the banks' shares of core deposit funding. By contrast, differences across …

are effective in restraining risk-taking behavior at banking institutions …In this paper, we investigate whether U.S. bank holding companies (BHCs) with strong and independent risk management … functions have lower enterprise-wide risk. We hand-collect information on the organizational structure of the risk management …