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in theory, empirical tests of the rare disaster explanation are scarce. We estimate a disaster-including consumption …The rare disaster hypothesis suggests that the extraordinarily high postwar U.S. equity premium resulted because … thus provide empirical support for the rare disaster hypothesis, and help reconcile the nexus between real economy and …
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If the threshold that triggers climate catastrophe is known with certainty, and the benefits of avoiding catastrophe are high relative to the costs, treaties can easily coordinate countries' behavior so as to avoid the threshold. Where the net benefits of avoiding catastrophe are lower, treaties...
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