stockholders bear a disproportionate share of output uncertainty. We do this in the context of a non-Walrasian RBC model where risk … reallocation is justified by borrowing restrictions. The risk shifting mechanism we propose has the same effect as would arise from … a substantial increase in the risk aversion parameter of the representative agent. As with more standard RBC models, it …

This paper tests a two-part hypothesis: first, that during the period between publication of the risk-based capital …

dividend process of a risky asset. Under perfect information, the presence of risk-neutral arbitrageurs unambiguously reduces …