We use perturbation methods to derive a rule for the optimal risk-adjusted social cost of carbon (SCC) that … different aversions to risk and intertemporal fluctuations, convex damages, uncertainties in economic growth, atmospheric carbon …-run climate feedbacks. Our non-certainty-equivalent rule for the SCC incorporates precaution, risk insurance, and climate …

perturbation theory to derive an approximate tractable expression for this cost adjusted for climatic and economic risk. We allow … for different aversion to risk and intertemporal fluctuations, skewness and dynamics in the risk distributions of climate … analytical results, and offer analytical insights into numerical results on the effects of economic and damage ratio uncertainty …

-related damages and uncertainty that reduce productivity growth and raise precautionary savings. Instead, in scenarios that assume … climate change on r* can be substantial, even taking into account the high degree of uncertainty about the outcomes. Moreover …

Estimating risk preferences is tricky because controlling for confounding factors is difficult. Omitting or imperfectly … controlling for these factors can attribute too much observable behavior to risk aversion and bias estimated preferences. Agents … often modify risky decisions in response to dynamic wealth or asset thresholds, where they exist. Ignoring this dynamic risk …

uncertainty about future income triggers saving because of loss aversion. We extend their theoretical analysis to also consider … the internal margin, i.e., the strength, of loss aversion, and empirically study the relation between income risk …-income population of Bogotá, characterized by limited financial education and subject to substantial income risk. In line with the …

uncertainty about future income triggers saving because of loss aversion. We extend their theoretical analysis to also consider … the internal margin, i.e., the strength, of loss aversion, and empirically study the relation between income risk …-income population of Bogotá, characterized by limited financial education and subject to substantial income risk. In line with the …