meteorological forecasts or the implied market price of risk (MPR) are often not incorporated. We adopt a risk neutral approach (for … Risk Premiums (RPs) implied from either the information MPR gain or the meteorological forecasts. The size of RPs is …. -- Weather derivatives ; seasonal variation ; temperature ; risk premia …

. Concerning the impact of the index dynamics, we emphasize that it is important to distinguish between jump and diffusion risk …. The amount of (downward) jump risk reduces the cap rates but its overall impact on the expected utility is ambiguous …

We examine asset prices in a representative-agent model of general equilibrium. Assuming only that individuals are risk … averse, we determine conditions on the changes in asset risk that are both necessary and sufficient for the asset price to … incomplete in the sense of containing an uninsurable background risk, such as a risk on labor income. We extend our model to show …