The coefficient of relative risk aversion (CRRA) is notoriously difficult to estimate. Recently, Barro and Jin (On the …

We analyze the relationship between the stance of Eurozone monetary policy and the implicit risk aversion in the … the U.S. Federal Reserve. Our results show that a lax monetary policy decreases risk aversion, bearing out the evidence …

derive a general analytic formula for the "risk premium" governing the resulting climate policy. The formula generalizes … making under uncertainty. It clarifies the distinct roles of risk aversion, prudence, characteristics of the damage … formulation, and future policy response. We show that an optimal response to uncertainty substantially reduces the risk premium. …