Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry …

This paper analyzes optimal hedging of a tradable risk (e.g. price risk or exchange rate risk) with forward contracts … in the presence of untradable inflation risk. Utility is defined over real wealth. Optimal forward positions are derived … relative to a given initial exposure in the tradable risk. A nominally unbiased forward market usually implies a non-zero real …

preferences. Full insurance cannot be rejected. As the risk-sharing as-if-complete-markets theory might predict, estimated risk …We show how to use panel data on household consumption to directly estimate households’ risk preferences. Specifically …, we measure heterogeneity in risk aversion among households in Thai villages using a full risk-sharing model, which we …

insurance can change the composition of saving as well because the reduction in labor-income risk may affect the amount of …It is well known that the implicit insurance provided by labor income taxes can reduce total saving. We show that this … financial risk that an individual chooses to bear. Given plausible restrictions on preferences, any change in taxes that reduces …

in aggregate demand. As the investor is risk averse, volatility of aggregate demand reduces investment. Government …

Background: In making investment decisions, asset risk and return are two crucial criteria on which investors base … their decision. Objectives: This paper provides risk and return analysis and compares different traditional and alternative … estate, foreign exchange, cryptocurrencies, renewable energy sources, gold, and oil. Methods/Approach: The risk measures of …

This paper studies the hedging of price risk when payment dates are uncertain, a problem that frequently occurs in … static hedging strategy is sufficient. -- risk management ; hedging ; forwards ; uncertainty of time …