In this paper we: (i) provide a model of endogenous risk intolerance and serve aggregate demand contractions following … addressing these contractions. The key mechanism stems from heterogeneous risk tolerance: as a recessionary shock hits the … economy and brings down asset prices, risk-tolerant agents' wealth share declines and their leverage rises endogenously. This …

We provide a continuous-time "risk-centric" representation of the New Keynesian model, which we use to analyze the …

the emergence of a deflationary safety trap equilibrium with high risk premia. It is an acute form of a liquidity trap, in … emergence of an endogenous risk premium significantly alters the connection between macroeconomic policy and economic activity …

the emergence of a deflationary safety trap equilibrium with endogenous risk premia. It is an acute form of a liquidity … endogenous risk premium significantly alters the connection between macroeconomic policy and economic activity. “Helicopter drops …

the emergence of a deflationary safety trap equilibrium with endogenous risk premia. It is an acute form of a liquidity … endogenous risk premium significantly alters the connection between macroeconomic policy and economic activity. "Helicopter drops …

In this paper we: (i) provide a model of the endogenous risk intolerance and severe aggregate demand contractions … addressing these contractions. The key mechanism stems from heterogeneous risk tolerance: as a recessionary shock hits the … economy and brings down asset prices, risk-tolerant agents' wealth share declines and their leverage rises endogenously. This …

In this paper we: (i) provide a model of the endogenous risk intolerance and severe aggregate demand contractions … addressing these contractions. The key mechanism stems from heterogeneous risk tolerance: as a recessionary shock hits the … economy and brings down asset prices, risk-tolerant agents' wealth share declines and their leverage rises endogenously. This …

We study the effects of aggregate and idiosyncratic uncertainty on the entry of firms, total investment, and prices in … a competitive industry with irreversible investment. We first use standard dynamic programming methods to determine …

We study the effects of aggregate and idiosyncratic uncertainty on the entry of firms, total investment, and prices in … a competitive industry with irreversible investment. We first use standard dynamic programming methods to determine …