climate mean. We develop a novel method for estimating the welfare effects of observed risk preference changes using panel … data, and find that the climate-induced changes in risk preferences we observe increased welfare in both Indonesia and …

. International risk is defined as the beta of a country’s consumption growth with world consumption growth. High-beta countries hold … more foreign assets, as predicted by the theory. Despite the positive effects of beta, a country's idiosyncratic volatility …, but also future consumption growth. High-volatility countries have worse net foreign asset positions, suggesting that …