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

for safety and feasibility to regulate against significant risk. For significant risks, especially those that are … operations, and their interoperability. Further, it defends feasible risk reduction as an effective decision and regulatory tool …

labor-income risk can explain much of this risk-taking pattern. Uncontrollable labor-income risk stresses middle …, middle-income households reduce (controllable) financial risk. Richer households, having less pressure, can afford more risk …-taking. The poor take low risk because they avoid jeopardizing their subsistence consumption. …

Virtually all current theories of choice under risk or uncertainty are cognitive and consequentialist. They assume that … perspective, the risk-as-feelings hypothesis, that highlights the role of affect experienced at the moment of decision making … risky situations often drive behavior. The risk-as-feelings hypothesis is shown to explain a wide range of phenomena that …

This paper reviews household property risk management and estimates normatively optimal choice under theoretical … assumptions. Although risk retention limits are common in the financial planning industry, estimates of optimal risk retention … losses differently from other wealth losses, leading to wealth-reducing excess risk transfer. Possible theoretical …

uniform. We analyze how climate risks could be reduced via an insurance scheme at the global scale across regions and quantify … Models (IAMs), which assumes no risk sharing across region, we introduce global risk sharing via a market for state … across regions. We estimate that such risk sharing scheme of climate risks could lead to welfare gains reducing the global …

Reputational risk has become a critical concern for most organizations. Insurers, who rely on trust to generate … expectations, which we test using a rich data set on operational loss risk events. Results indicate that passage of the Sarbanes … significantly related to reputational risk. In some samples, Tobin's Q, the level of competition, and the discount rate also were …

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 …

contributions in insurance economics since that time. The review begins with the role of utility, risk, and risk aversion in the … beginning of modern economic analysis of insurance activity. This chapter reviews the main theoretical and empirical … insurance literature and summarizes work on the demand for insurance, insurance and resource allocation, moral hazard, and …