Our understanding of risk preferences can be sharpened by considering their evolutionary basis. The existing literature … has focused on two sources of risk: idiosyncratic risk and aggregate risk. We introduce a new source of risk, heritable … risk, in which there is a positive correlation between the fitness of a newborn agent and the fitness of her parent …

We investigate the relationship between bankruptcy risk and expected future sales growth for Norwegian non-listed firms … for the period 1988-2007. We find that firms with high bankruptcy risk also have high expected future growth. Financial … ratios characterizing firms with high bankruptcy risk also characterize firms with high future expected growth. Small firms …

This paper provides evidence that domestic opportunities to share risk have contributed to slower growth. We first … provide a simple model economy that demonstrates how a country's ability to diversify risk is linked to its growth rate. In … domestic opportunities to diversify risk and growth. We employ two econometric procedures: (1) traditional instrumental …

growth model to explore the conditions under which an economy is sustainable, considering different types of risk. In general … equilibrium, sustainability boils down to supply-side factors, with increased growth, decreased consumption risk, and greater …, catastrophic risk management, investments in clean and dirty technologies, and the importance of risk-sharing assets …