We analyse bidding behaviour in auctions when risk-averse buyers bid for a good whose value is risky. We show that when … risk in the valuations increases, DARA bidders will reduce their bids by more than the appropriate increase in the risk … marginal utility of income increases with risk, so buyers are reluctant to bid so highly. We also show that precautionary …

We extend the monetary-asset user-cost risk adjustment of Barnett, Liu, and Jensen (1997) and their risk … generate potentially larger and more accurate CCAPM user-cost risk adjustments than those found in Barnett, Liu, and Jensen … (1997). We show that the risk adjustment to a monetary asset¡¯s user cost can be measured easily by its beta. We show that …

Institutions can affect individual behavior both via their efficiency impact and via their risk reducing mechanisms … simultaneously extant institutions. This paper presents a simple model of institutional choice in a labor market when there is a risk …-sectional survey data from China, we find that risk and risk aversion are strongly related to the choice of a labor market institution …

of their banking system risk and profitability. Rapid credit growth has been a recent feature of financial development in …

not shared in the economy provides greater understanding of why the economy lacks risk-sharing arrangements in specific … areas and can suggest areas where the economy’s risk-sharing capability could be enhanced. The authors find that a … negligible amount of risk (around 10 percent) is shared in the aggregate, about 50 percent is shared within regions and …

-varying risk premium. However, there is little evidence that the forecast error is related to fundamentals, although most … considering intervention as a channel through which fundamentals influence risk premiaannel through which fundamentals influence … risk premia. …

clear indication of how derivatives are used to manage interest rate risk, or whether they are used to increase or reduce … that risk. …

risk and return. Because diversification tends to reduce risk without a proportional reduction in returns, an overwhelming ….> This article investigates specialization in banking and its effects on risk and return. The author compares a group of … regulators, especially in the field of capital requirements, and the need to revise the current approach to regulatory risk …