This paper studies the aggregate implications of imperfect risk-sharing implied by a class of New Keynesian models with … idiosyncratic income risk and incomplete financial markets. The models in this class can be equivalently represented as an economy … representative-agent economy to perform counterfactuals. We find that deviations from perfect risk-sharing were an important …

treatments respond to flood risk. We identify reactions to flood risk, distinctly from price effects due to flood damage, by … seaboard. We find that homes in high flood risk zones situated in towns that participate in public flood awareness activities …

real economic activity growth, in line with a risk shock. Conversely, a certainty shock (a shock strongly decreasing …

We study the relative risk aversion of an individual with particular social preferences: his wellbeing is influenced by …, the individual becomes more risk averse when he rises in the wealth hierarchy. Second, if the individual's level of … intensification is strong enough, then the individual becomes less risk averse: the individual's desire to advance further in the …

We consider the external validity of laboratory measures of risk attitude. Based on a large-scale experiment using a … laboratory risky financial decisions, and (ii) behavior in naturally-occurring field behavior under risk (financial, health and … employment decisions). We find that measures of risk attitude are related to behavior in laboratory financial decisions and the …

A number of studies have found that the cross-section of stock returns reflects a risk premium for bearing downside … risk; however, existing measures of downside risk have poor power for predicting returns. Therefore, this paper proposes a … novel measure of downside risk, the ES-implied beta, to improve the prediction of the cross-section of asset returns. The ES …

, with pricing errors of similar magnitude as the risk premiums they were designed to explain. We trace the errors to the …

The financial crisis exposed enormous failures of risk management by financial institutions and of the authorities … assess where the balance has been struck between the robustness and the risk sensitivity of the capital framework. This paper … fundamental tradeoffs that may exist between robustness, complexity, and risk sensitivity. We review the history of risk …