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 …

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

Is it really possible to control for the downside risk when the market environment is in constant evolution? If so … variance and correlation terms are properly taken into account, downside risk can be mitigated without compromising long …

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 …

from natural hazards. Increasing investments in disaster risk reduction have led to a significant reduction in human … and poor countries. The analysis suggests indeed that economic growth leads to better defenses but also more risk taking …

in the model which represent the micro foundation in the model. One of the conclusions is that the more “risk averse” the …