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We provide a microeconomic analysis of the incentive and welfare effects of idiosyncratic return risk. While most of … rate separates savers from borrowers. At the intensive margin, we identify restrictions on the agent's risk preferences for …
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portfolios, almost as well as the Fama-French factors. However, in the Fama-French model, the estimated risk premium for the … contrast, generates estimated risk premia whose signs accord our story of private investment self-financing needs. We also …
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As a result of a 2003 SEC regulation intended to increase the transparency of firms' off-balance sheet obligations, tabular data on purchase obligations became available in the MD&A section of firms' 10-Ks. We develop a program to read the text of these disclosures and we create a database to...
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