This paper studies the life cycle consumption-investment-insurance problem of a family. The wage earner faces the risk … of a health shock that significantly increases his probability of dying. The family can buy term life insurance with …

stochastic mortality risk and health shock risk numerically. These shocks are interpreted as critical illness and can negatively … affect the expected remaining lifetime, the health expenses, and the income. In order to hedge the health expense effect of a …

-section shows large differences as young, educated, high income, and risk tolerant investors are net buyers throughout and, thus … liquidity shocks from Covid-19 are net sellers. Given the high risk of illness, older people are hit by dual blows to both … health and finances. …

individual requires to accept increased occupational fatality risk. We derive a relationship between the value of a statistical … life (VSL) and the degree of complementarity between consumption and labor supplied when health status serves as a … potential source of variation in this relationship. Our empirical analysis finds that variations in an individual's health …

We propose and implement a procedure to optimally hedge climate change risk. First, we construct climate risk indices … climate risk hedge portfolios. The new mimicking portfolio approach is much more efficient than traditional sorting or maximum … delivering markedly higher and statistically significant alphas and betas with the climate risk indices. …

We propose and implement a procedure to optimally hedge climate change risk. First, we construct climate risk indices … climate risk hedge portfolios. The new mimicking portfolio approach is much more efficient than traditional sorting or maximum … delivering markedly higher and statistically significant alphas and betas with the climate risk indices. …