This paper empirically estimates a micro-founded model which studies the macroeconomic impact of environmental and financial risks on consumption choices in the Mediterranean Region. The analysis is carried out using time series aggregate data for fourteen Mediterranean countries over the period...

This work shows that the risk premium can be a mistaken measure of the reduction in utility caused by risk since, when different levels of wealth are considered, the relative size of the former is related to that of the latter only in some cases. The analysis indicates that this is because the...

This paper studies precautionary saving when many small risks are considered. We first introduce two simultaneous risks: labor income and interest rate risks. We show that, in this context, sufficient conditions for precautionary saving are weaker than in similar models. Moreover, we find that,...

We show that the use of pooled and panel data in estimating β-convergence across countries (or other territorial areas) may involve some pitfalls, since these techniques cannot properly distinguish between actual convergence and the possibility of decreasing growth rates over time within each...