after controlling for realized earnings, wealth and time-invariant unobserved characteristics such as permanent income and …

The author examines the impact of incomplete risk-sharing on growth and welfare. The source of market incompleteness in … the economy is private information: a household's idiosyncratic productivity shock is not observable by others. Risk …-sharing between households occurs through long-term contracts with intermediaries. The author finds that incomplete risk-sharing tends …

detrimental to welfare. In our model, risk-averse agents receive private and public signals on future income realizations and …In this paper, we revisit the conventional view on efficient risk sharing that advance information on future shocks is … signals are informative. In this case, we show that better public information can improve the allocation of risk when private …

We apply a model of preferences for information to the domain of decision making under risk and ambiguity. An uncertain … unpleasant to think about, an individual tends to be averse to risk and ambiguity. Yet in circumstances in which thinking about … an information gap is pleasant, an individual may exhibit risk- and ambiguity-seeking. The model provides explanations …

low quality (that is, not co-conspirators at all but government agents). The economic theory of asymmetric information can …

In this paper, I examine the impact of ambiguity (Knightian uncertainty), alongside that of risk, on firms’ voluntary … disclosure decisions. I confirm the well-known result that an increase in risk— uncertainty over outcomes—is associated with an … which risk impacts managers’ disclosure decisions have been extensively studied in the accounting literature, no extant …

In an overlapping generations maximization framework with consumers, whose information on uncertain future income … solution we assume that consumers solve their intertemporal optimization problem sequentially. First they assess risk …