volatility risk, for dollar, euro and pound rates at a daily frequency, between October 1998 and August 2006. The measurement of … the volatility risk premium rests on a simple model according to which variance forecasts are generated under the … large - negative - compensation for volatility risk, a component which was smaller in absolute terms - but not relative to …

volatility risk, for dollar, euro and pound rates at a daily frequency, between October 1998 and August 2006. The measurement of … the volatility risk premium rests on a simple model according to which variance forecasts are generated under the … large - negative - compensation for volatility risk, a component which was smaller in absolute terms - but not relative to …

Bargaining Solution (NBS). For one-shot negotiations, a cornerstone result of Roth (1989) establishes that the more risk averse … the more risk averse player is still bounded by half the total amount. In addition, this player does not lose from … bargaining over more rounds if his opponent exhibits non-increasing absolute risk aversion. Finally, both players' risk profiles …

Since 2007, an increase in risk or risk aversion has resulted in a US dollar appreciation and greater deviations from … covered interest parity (CIP). In contrast, prior to 2007, risk had no impact on the dollar, and CIP held. To explain these …