adjusting for risk. The traditional actuarial approach - the approach currently used by the Social Security Administration in … generating its most widely cited numbers - ignores risk and instead simply discounts "expected" future flows back to the present … using a risk-free rate. If benefits are risky and this risk is priced by the market, then actuarial estimates will differ …

This paper proposes a dynamic risk-based model that captures the high expected returns on value stocks relative to …, but that shocks to the time-varying price of risk are not. As long-horizon equity, growth stocks covary more with this … time-varying price of risk than value stocks, which covary more with shocks to cash flows. When the model is calibrated to …

This paper develops a rule for calculating a discount rate to value risky projects. The rule assumes that asset risk …

"This paper studies empirically the relationship between trade policy and individual income risk faced by workers, and … three steps. First, longitudinal data on workers are used to estimate time-varying individual income risk parameters in … various manufacturing sectors. Second, the estimated income risk parameters and data on trade barriers are used to analyze the …

Empirical work testing for a negative tradeoff between risk and incentives, a cornerstone of agency theory, has not had … much success. Indeed, the data seem to suggest a positive relationship between measures of uncertainty and incentives … uncertainty on incentives through the allocation of responsibility to employees. When workers operate in certain settings, the …

's systematic equity risk and falls with the firm's unsystematic equity risk. Further, an increase in the firm's total equity risk … is associated with a fall in q. The negative relation between the change in total risk and the change in q is robust …

implications of risky behaviors by youths. I begin by reviewing perspectives on youth risk-taking from traditional rational … risk-taking by youths, and how this compares to adults. I review the evidence on youth risk taking from the studies in this … risk taking by youths, (b) despite this, these factors are not very successful in predicting the dramatic time series …

uncertainty over the period 1970 to 1995. We construct measures of inflation uncertainty as well as aggregate nominal and real … uncertainty. The results not only corroborate previous findings of an inverse relationship between contract duration and inflation … uncertainty, but document that this relationship extends to both measures of aggregate uncertainty. We also explore the robustness …

Typical value-at-risk (VAR) calculations involve the probabilities of extreme dollar losses, based on the statistical … VAR values that are adjusted for risk aversion, time preferences, and other variations in economic valuation. In the … context of a representative agent equilibrium model, we construct an estimator of the risk-aversion coefficient that is …