remittances are jointly determined, we exploit rainfall shocks as instrumental variables for income changes. In households with …

We use newly-available Indian panel data to estimate how the returns to planting-stage investments vary by rainfall … realizations. We show that the forecasts significantly affect farmer investment decisions and that these responses account for a … when there is no skill. We show, using an IV strategy in which the Indian government forecast of monsoon rainfall serves as …

: capital investment, hiring, research and development, and advertising. We find that uncertainty depresses capital investment … literature emphasizing that long investment lags create valuable real put options which offset the effects of call options lost … roughly a third of the fall in capital investment and hiring that occurred in 2008-10 …

in capital price and levels of aggregate investment and output. I present a model economy where the industry-level policy …-related investment cost is uncertain. Holding the average one-period investment cost constant, policy uncertainty leads to a higher … capital price and subsequently to lower levels of long-run aggregate investment and output. Policy uncertainty also makes …

risk preference affects, for instance, individuals’ savings and investment behaviour, adoption of self-protection and self …Individual risk preference may change after experiencing external socio-economic or natural shocks. Theoretical … predictions and empirical studies suggest that risk taking may increase or decrease after experiencing shocks. So far the …

With the increasing share of volatile renewable energies, weather prediction becomes more important to electricity … markets. The weather-driven uncertainty of renewable forecast errors could have price increasing impacts. This research sets … weather types and their renewable production uncertainty is proved via empirical methods. Weather types are identified in …

theory suggests that with increasing labor income risk, the reluctance of households to hold stocks increases. We propose to … measure income risk as the observed variation of household income over a five year period. We find that indeed higher income … risk reduces the propensity to invest in stocks. However, when controlling for household heterogeneity as well as …

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 … theoretical predictions, we find that an increase in income risk is associated with higher savings for loss-averse individuals …

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 … theoretical predictions, we find that an increase in income risk is associated with higher savings for loss-averse individuals …