The risk conscious investor is defined as the maximizer of a conservative valuation or dynamically a nonlinear …

between consumption losses in a disaster and the risk premium, a small amount of risk sharing can significantly attenuate the … effect that disaster risk has on the equity premium. We characterize the sensitivity of risk premium to wealth distribution … lead to significant variation in disaster risk premium. It also highlights the conditions under which disaster risk premium …

between consumption losses in a disaster and the risk premium, a small amount of risk sharing can significantly attenuate the … effect that disaster risk has on the equity premium. We characterize the sensitivity of risk premium to wealth distribution … lead to significant variation in disaster risk premium. It also highlights the conditions under which disaster risk premium …

disagreements among investors about disaster risk. We show that such disagreements generate strong risk sharing motives, such that … just a small amount of optimists in the economy can significantly reduce the disaster risk premium. Our model highlights … the "latent" nature of disaster risk: the disaster risk premium will likely be low and smooth during normal times, but can …