empirical work that seeks to test the basic coverage-risk prediction of adverse selection theory--that is, that policyholders … why a coverage-risk correlation may be found in some pools of insurance policies but not in others. We also review the …

in credit markets and the buildup of risk ex ante. During a systemic crisis, bailouts relax balance sheet constraints and … mitigate the severity of the recession. Ex ante, the anticipation of such bailouts leads to an increase in risk-taking, making …

This paper presents a market equilibrium model of CEO assignment, pay and incentives under risk aversion and … distorted by the agency problem as firms involving higher risk or disutility choose less talented CEOs. Such firms also pay … higher salaries in the cross-section, but economy-wide increases in risk or the disutility of being a CEO (e.g. due to …

. This paper explores the effect of such relief on incentives and the allocation of risk in a model with private insurance …

A significant source of risk arises from uncertainty concerning future government policy. Government action - - tax … preexisting rules. The effects of government relief - - compensation, grandfathering, phase-ins - - on ex ante incentives and risk …