This paper discusses new challenges we face with terrorism as a catastrophic risk by focusing on risk assessment, risk … management as well as risk financing issues. The special characteristics of terrorism compared with major natural hazards call … for the development of public-private partnerships, as recognized in November 2002 when the Terrorism Risk Insurance Act …

firms' incentives to selectively enroll low-cost individuals, governments frequently "risk-adjust" payments to firms based … on enrollees' characteristics. We model how risk adjustment affects selection and differential payments---the government … that firms reduce selection along dimensions included in the risk-adjustment formula, while increasing selection along …

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 …

bonds, greater risk-bearing capacity in the U.S. than the rest of the world, and nominal rigidities. A flight to safety … generates a dollar appreciation and decline in global output. Dollar bonds thus command a negative risk premium and the U ….S. holds a levered portfolio of capital financed in dollars. We quantify the effects of safety shocks and heterogeneity in risk …

these rejections are in part a consequence of the presence of omitted risk factors which are associated with nonzero risk … model should partially reflect exposure to these omitted sources of systematic risk and,hence, should help explain expected … residual risk effect in the previous literature:(1) nonlinearity of the residual risk effect and (2) the inadequacy of the …

the seriousness of this type of risk in the current United States situation are presented. Sufficient conditions on the … structure of the economy for such intergenerational risk pooling to be mutually beneficial to all members of society are derived …

banks to pursue safer investments in low-risk government securities …

We develop a model of pandemic risk management and firm valuation. We introduce aggregate transmission shocks into an …