. We decompose the VIX into two components, a proxy for risk aversion and expected stock market volatility (“uncertainty …We document a strong co-movement between the VIX, the stock market option-based implied volatility, and monetary policy … monetary policy decreases risk aversion after about five months. Monetary authorities react to periods of high uncertainty by …

stance. When decomposing the VIX into two components, a proxy for risk aversion and expected stock market volatility …The VIX, the stock market option-based implied volatility, strongly co-moves with measures of the monetary policy … (“uncertainty”), we find that a lax monetary policy decreases both risk aversion and uncertainty, with the former effect being …

stance. When decomposing the VIX into two components, a proxy for risk aversion and expected stock market volatility …The VIX, the stock market option-based implied volatility, strongly co-moves with measures of the monetary policy … (“uncertainty”), we find that a lax monetary policy decreases both risk aversion and uncertainty, with the former effect being …

stance. When decomposing the VIX into two components, a proxy for risk aversion and expected stock market volatility …The VIX, the stock market option-based implied volatility, strongly co-moves with measures of the monetary policy … ("uncertainty"), we find that a lax monetary policy decreases both risk aversion and uncertainty, with the former effect being …

We present a new model of asset prices in which investors evaluate risk according to prospect theory and examine its … empirical estimates of its volatility, skewness, and capital gain overhang. We find that the model is helpful for thinking about …

indicate that it could be possible for a capital income tax increase not to stimulate risk taking even if the tax code provides … the attractive full loss offset provisions. However, risk taking can be stimulated if the investor interprets part of the … tax as a loss instead as a reduced gain. Then investor becomes risk seeking and moves away from the discomfort zone of …

We study the relationship between stock market return expectations and risk aversion of individuals and test whether … Dutch National Bank Household Survey, we find that risk aversion levels have significant and negative effects on stock … between stock market expectations and risk aversion. These effects are in addition to a significant and positive impact from …