states, insurers increase rates in low friction states. Over time, rates get disjoint from underlying risk, and grow faster … in states with low pricing frictions. Our findings have consequences for how climate risk is shared in the economy and …

Historical evidence like the global financial crisis from 2007-09 highlights that sector concentration risk can play an … II consider only name concentration risk explicitly in their solvency capital requirements for asset concentration risk … and neglect sector concentration risk. We show by means of US insurers' asset holdings from 2009 to 2018 that substantial …

We show that any objective risk measurement algorithm mandated by central banks for regulated financial entities will … result in more risk being taken on by those financial entities than would otherwise be the case. Furthermore, the risks taken … the entire financial system more fragile. This result leaves three directions for the future of financial regulation …

risk, and affects estimation of firm value at risk (VaR) …

risks. The capital charge to cover market risk is a function of a metric known as Value-at-Risk (VaR). This paper … the Brazilian framework: variable risk constraint multiplier and heterogeneous beliefs between financial institutions and …

regulatory costs. We test our model by examining changes in risk around the Dodd-Frank Act, a major regulation with size …Many regulations are based on size thresholds. We develop a model that shows that such regulations distort risk …-taking incentives, providing above-threshold firms with greater incentives to take risk and below-threshold firms the opposite. Risk …

that such regulations distort risk-taking incentives, providing above-threshold firms with greater incentives to take risk … and below-threshold firms the opposite. Risk distortion varies nonlinearly as a function of the distance from the size … threshold, and is increasing in the magnitude of the regulatory costs. We test our model by examining changes in bank risk …

straightforwardness, allowing regulators measure risk using a standard database of primitive factors and portfolio positions only, leaving … little error margin in comparing market risk for different financial funds. As such, it should be a tool of preference for …, like short-term Efficient-Market-Hypothesis, EMH. In addition, the model includes a new measure of risk: a liquidity …

regulation has been added detection and prevention of systemic risk. The two great, albeit quite different, capital market …At a time of such great turbulence, looking to the future directions of capital markets and their regulation in … current, and readily observable, phenomena which are likely to shape capital markets regulation in the near future. First of …