As U.S. Treasury securities carry the full faith and credit of the U.S. government, they are free of default risk. Thus …, their yields are risk-free rates of return, which allows the most recently issued U.S. Treasury securities to be used as a …

Sylvain Leduc notes that the extent of international risk-sharing remains surprisingly small. This appears to be the … so that their level of consumption varies less from year to year. In “International Risk-Sharing: Globalization Is Weaker … Than You Think,” Leduc digs a little further into the data to uncover why, in spite of recent trends, risk-sharing doesn …

potential losses on their portfolios? A new methodology called value at risk (VAR) can be used to estimate these losses. In this …

In the context of principal-agent theory risk is largely seen as a source that causes inefficiencies and lowers … tournament framework that risk in terms of chance is beneficial from the point of view of a profit maximizing principal who …

In this chapter I argue that as a response to the introduction of capital requirements in the form of risk weights … that the new optimum has a lower risk. The effect of the regulation depends on several things, most importantly the … correlation between individual investments, investor preferences and the relative size of risk weights. …

conditional independence. The paper gives a taxonomy of issues of confounding, a parameterization by risk or safety, and develops …