Although risk aversion has been used in economic models for over 275 years, the past few decades have shown how higher … order risk attitudes are also quite important. A behavioral approach to defining such risk attitudes was developed by … Eeckhoudt and Schlesinger (2006), based upon simple lottery preference. This article show how the mathematics of lattice theory …

traders face this sort of joint inference problem, the risk of selecting the wrong features can spill over and distort how … even if traders themselves are fully rational. Moreover, I show how modeling feature-selection risk leads to additional … predictions that are outside the scope of noise-trader risk. For instance, to discover pricing errors as quickly as possible, a …

This paper characterizes the stochastic deterioration resulting from taking a zero-mean financial risk in the presence … of correlated non-financial background risk. We show in particular that it has an equivalent stochastic order as well as … stochastic deterioration can be decomposed into a "correlation increase'' and a "marginal risk increase''. We further …

and market-based measures that are e ective in constraining bank risk. Comparing depositors' reaction in two countries …

We build a balance sheet-based model to capture run risk, i.e., a reduced potential to raise capital from liquidity … critical in order for banking system regulators to adequately assess run risk and resilience. By bringing a time series of SVB … SVB prone to run risk, as they were increasingly relying on held-to-maturity, aka hidden-to-maturity, accounting standards …

We build a balance sheet-based model to capture run risk, i.e., a reduced potential to raise capital from liquidity … critical in order for banking system regulators to adequately assess run risk and resilience. By bringing a time series of SVB … SVB prone to run risk, as they were increasingly relying on held-to- maturity, aka hidden-to-maturity, accounting …