This paper provides evidence that a change in the surrounding risk-taking environment, via increased casino access, affects investors' subsequent willingness to take portfolio risk. Using the initial legalization and opening of commercial casinos in the United States as a quasi-natural...

We use a compound option-based structural credit risk model to infer a term structure of banking crisis risk from market data on bank stocks in daily frequency. Considering debt service payments with different maturities this term structure assigns a separate estimator for short- and long-term...