This paper integrates the decision making of a firm facing production uncertainty into the theory of aggregate supply … presence of uncertainty reduces the aggregate supply, whether producers are risk neutral or risk averse. Second, given the … assumption of decreasing absolute risk aversion an increase in interest rate reduces the aggregate supply, and hence the presence …

ensure the following: (i) equality among the risk-adjusted rates of return and (ii) equilibrium in the output market. The … also conducted. These assess the effects of risk on growth and the impact of fiscal policy on both the mean growth rate and …

We investigate how exchange-rate uncertainty affects the foreign direct investment decision of a risk … exchange risk, by inducing the MNF to open plants in both markets, may prevent entry by the local competitor …

This study empirically examines the role of risk sharing between taxable investors and the government on the relation … weaker or even reverses when (i) a firm’s systematic risk is high, (ii) the market risk premium is high, or (iii) the risk … around substantive increases and decreases in the risk parameters. We corroborate our findings in a single country setting …

any given initial expected risk level, optimal risk-taking decisions involving uncertainty in a multi-period world should …

Fragmented risk is a theme that runs throughout many of the issues and controversies in insurance law, but one that has … received insufficient attention. Insurance reflects a tension between bundling and fragmenting risk. One of the great virtues … ordinary course of business under the CGL policy. Policyholders benefit from bundling risk because coverage is easier to …