How does risk affect saving? Empirical work typically examines the effects of detectible differences in risk within the … data. How these differences affect saving in theoretical models depends on the metric one uses for risk. For labor …-income risk, second-degree increases in risk require prudence to induce increased saving demand. However, prudence is not …

empirical viewpoint. Previous research analyzed portfoliotheoretical issues, mispricing patterns, and counterparty risk. This …, we use both a risk neutral and a loss averse value function. Individual preferences prove relevant especially for those …

paradigmassumes that any investment strategy has its own “inherent reward”and “inherent risk” that can be judged with common sense …. Ijustify axiomatically the existence and uniqueness (ratio scale)of inherent reward (U) and inherent risk (D) that could … beregarded as universal measures of reward and risk for any giveninvestment strategy. Incorporating the notion of …

. For example, the nature of monotonicity of the indifference curve depends on the underlying mean. Price hedging decisions … hedging decisions within the prospect theory. We illustrate our general considerations with a thoroughly worked out example. …

large risk. Therefore, there is a good potential for Hungarian investors to realize substantial benefits in terms of risk … examining the performance of several ex ante portfolio strategies. In order to control the currency risk, different types of … hedging approaches are implemented. …

Since the mid-nineties, agricultural economists discuss the suitability of "weather derivatives" as hedging instruments …. Others think that the low hedging effectiveness of (standardized and non-customized) weather contracts cripple the market …. Motivated by the question of how weather derivatives should be priced to agricultural firms, this paper describes a risk …

possible at time T if the initial capital is not sufficient to hedge xc. This introduces a new risk into the market and our … main aim is to minimize this shortfall risk by making use of results from bsde theory. …

This note considers the treatment of risk and uncertainty in the recently established social cost of carbon (SCC) for … discounting, it mis-estimated climate risk, possibly hugely. Given the uncertainty about estimating the SCC, the note concludes by …

countries in which they live) at risk. …