Using German panel data, we assess the causal effect of job loss, and thus of an extensive income shock, on risk … attitude. In line with predictions of expected utility reasoning about absolute risk aversion, losing oneś job reduces the … perceives the threat of job loss and is of a transitory nature. The change in stated risk attitude matches observable job …

We investigate the impact of workers' exposure to unemployment risk on CEO incentive compensation. Exploiting state …-level changes in unemployment benefits as a source of variation in workers' unemployment costs, we find that after unemployment … insurance benefits become more generous boards increase the convex payoff structure of CEO pay to encourage risk-taking. The …

. International risk is defined as the beta of a country’s consumption growth with world consumption growth. High-beta countries hold …We show that countries that take on more international risk are rewarded with higher expected consumption growth … more foreign assets, as predicted by the theory. Despite the positive effects of beta, a country's idiosyncratic volatility …