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 …

We present a tractable model of the effects of nonfinancial risk on intertemporal choice. Our purpose is to provide a … economy, where most modelers have chosen not to incorporate serious nonfinancial risk because available methods were too … most of the key implications of nonfinancial risk for intertemporal choice. …

alternative measures of income uncertainty in a cross-section of households. In addition to the usual controls, risk aversion is …

-probability extreme events on environmental policy in a continuous-time real options model with 'tail risk'. In a nutshell, our results … indicate the importance of tail risk and call for foresighted pre-emptive climate policies. …

one or the introduction of additional risks beyond a first risk can actually reduce the precautionary saving motive … because the new constraint or risk can ‘hide?the effects of the preexisting constraints or risks …