insurance against the risk of drug expenses. In contrast, the social welfare criterion suggests that individuals should purchase …Individual moral hazard engendered by health insurance and monopolistic production are both typical phenomena of drug … more insurance coverage than they choose to do in the market equilibrium. …

others. Relatively more risk-averse people buy insurance against aggregate risk, and relatively less risk-averse people sell … insurance. These trades reduce the welfare cost of business cycles for everyone. Indeed, the least risk-averse people benefit …I study the welfare cost of business cycles in a complete-markets economy where some people are more risk averse than …

everal empirical findings have challenged the traditional trade-off between risk and incentives. By combining risk … risk and incentives can be explained. …

assumption of (intertemporal) risk neutrality reduces the growth effect in social discounting and significantly amplifies the … importance of risk and correlation. Second, debate and models largely overlook the difference in attitude with respect to risk … and with respect to non-risk uncertainty. The paper derives the resulting changes of the risk-free and the stochastic …

This paper analyzes optimal incentive compatible debt contracts when lenders are risk averse. The decisive factor in … this regard is that risk aversion requiresto consider further sources of risk the lenders are exposed to. The main … due to risk aversion oflenders which is reinforced by the introduction of a further source of risk – are shown to be in …

and interbank rate risk on the optimaldecisions on deposits and loans of a competitive bank. It is found that dueto the … introduction of both sources of risk there appear direct effects as wellas portfolio effects which jointly determine changes in the … bank's behavior.Moreover, it is shown that there is an interaction between the effects of theintroduction of risk and …

-level, idiosyncratic risk implies that distinct risk-sharing institutions - even those providing the same level of insurance - can lead to …We analyze the role of risk-sharing institutions in transitions to modern economies. Transitions requires individual …-level risk-taking in pursuing productivity-enhancing activities including using and developing new knowledge. Individual …

asymmetric risk preferences with respect to downside risk. The optimal output (price) of a risk-averse monopolist facing marginal … cost uncertainty will not exceed that of his risk-neutral counterpart, and will be lower (higher) for realistic aspiration …

has three components: the pure rate of time preference, a measure of relative risk aversion, and the rate of growth of per … respect to consumption is particularly important because it assumes three roles: consumption smoothing over time, risk … rates of risk and inequity version can be expected to play significant roles. The consumption growth rate plays four roles …

has three components: the pure rate of time preference, a measure of relative risk aversion, and the rate of growth of per … respect to consumption is particularly important because it assumes three roles: consumption smoothing over time, risk … rates of risk and inequity aversion can be expected to play significant roles. The consumption growth rate plays multiple …