Should the realized risk premium be taxed – or not? In a simple two asset portfolio model we analyze the optimal … taxation rule when the economy faces aggregate risk. We show in an appropriate designed tax system, that the risk premium of … the risky asset should be fully taxed if the households are risk neutral in public consumption. If they are risk averse in …

of the consumption/wealth ratio. We argue that time-varying expected business conditions likely capture time-varying risk …, while time-varying consumption/wealth may capture time-varying risk aversion. …

Capital controls lower the variability of the exchange rate and reduce the risk premium as well as the domestic … interest rate. On the other hand, capital controls reduce the number of noise traders and, therefore, the risk-bearing capacity …

ranges from August 2002 to May 2009. As results we find significant positive risk premia, both in the block contract market … and in the day-ahead market. The risk premia in day-ahead market contracts vary in magnitude and in sign throughout the … day. Furthermore, we detect a term structure of risk premia during the sub-period in which all three market segments were …

hedging pressure caused by deviating risk preferences is the most promising approach. This paper contributes to this … positive risk premia at the short-end. Furthermore, we find that risk premia show a term structure. Evidence for the existence … of seasonality in the risk premia is found as well. When testing for factors influencing the risk premia the results …

Reducing greenhouse gas emissions not only lowers expected damages from climate change but also reduces the risk of … abatement, often do not capture this risk reduction benefit. Risk-averse individuals are willing to pay a risk premium, an … obtained for calculating a risk premium to be included in the social cost of carbon. While more research is needed in this area …

risk of catastrophic impacts. However, estimates of the social cost of carbon, which measures the marginal value of carbon … dioxide abatement, often do not capture this risk reduction benefit. Risk-averse individuals are willing to pay a risk premium … estimates obtained for calculating a risk premium to be included in the social cost of carbon. While more research is needed in …

farmers may require a premium in excess of the decrease in profits to adopt a conservation plan. Identification of this risk …