In his basic model of debt renegotiation, BESTER [1994] argues that collateral is more effective if high risk projects … are financed. This result, however, crucially depends on the definition of risk. Using the second-order stochastic … dominance criterion introduced by ROTHSCHILD AND STIGLITZ [1970], we show that it is not a project's high risk, induced by a …

methodologies from the discipline of economics but also refers to research from related disciplines (sociology, political science …

methodologies from the discipline of economics but also refers to research from related disciplines (sociology, political science …

, where capital accumulates through increased density of capital at risk in a given area, it is optimal for (i) the … probability of disaster occurrence to decrease with income; (ii) the capital at risk - and thus the economic losses in case of … development and slower than income at high levels of development. In that case, increasing risk-taking reinforces economic growth …

. Spouses have to choose between risky lotteries, first separately and then jointly. We find that spouses' individual risk …

different risk preferences and measure efficiency with a structural model based on utility maximization. Using the almost ideal … demand system, we estimate input and profit demand functions to obtain proxies for expected return and risk. Efficiency is … then measured in this risk-return space. Mean risk-return efficiency is somewhat higher than cost and considerably higher …

In this article, we investigate risk return characteristics and diversification benefits when private equity is used as …. There is a high marginal diversifiable risk reduction of about 80% when the portfolio size is increased to include 15 … investments. When the portfolio size is increased from 15 to 200 there are few marginal risk diversification effects on the one …