The experiment reported in this paper identifies the effect of experience on revealed risk attitudes by examining “one …-shot” insurance choices made by subjects faced with a low-probability risk and their choices when they are faced with repeated … exposure to an identical risk. I find that subjects engaged in greater risk taking when making repeated choices. Estimates from …

I develop a dynamic capital structure model to examine how the nature of risk affects firm's debt policy. In the model …, firm's fundamental risk, captured by its cash flow process, consists of transitory and persistent parts with markedly … different dynamics. The model explains the observed dispersion in the risk-leverage relationship. Firms with similar total …