In this paper we: (i) provide a model of endogenous risk intolerance and serve aggregate demand contractions following … addressing these contractions. The key mechanism stems from heterogeneous risk tolerance: as a recessionary shock hits the … economy and brings down asset prices, risk-tolerant agents' wealth share declines and their leverage rises endogenously. This …

This study examines the differences in household financial risk tolerance across the Eurozone countries and over time …. Using the HFCS data, household subjective financial risk tolerance, stock ownership, and mutual fund ownership are all found … propensity score matching, the differences in risk tolerance between Southern and Northern European households remain …

This paper investigates how of systematic risk varies over the lifecycle of the firm. If market equity beta is … determined by firm characteristics as the literature on the determinants of systematic risk holds, and if those characteristics … change over the lifecycle of the firm following a definite pattern as firm lifecycle theory suggests, then market equity beta …

uncertainty aversion parameter, which measures the investor's preference for robustness using econometric theory. I derive a …

uncertainty aversion parameter, which measures the investor's preference for robustness using econometric theory. I derive a …

Households face earnings risk which is non-normal and varies by age and over the income distribution. We show that … assets. Because households are subject to more background risk than previously considered, the estimated model implies a … substantially lower coefficient of risk aversion. We also find renewed support for rule-of-thumb investment strategies under the …

This paper derives continuous-time conditions for a manager compensated with a call option to increase risk-taking. We …

proposals that aim to reduce inefficient risk taking behaviour of banks …

financed centrally. This paper builds a model of portfolio allocation with heterogeneity in disaster risk exposure, and with a … discrimination by risk exposure is unfeasible. In this situation, the model shows that the regulator is willing to invest … of nuclear risk in France …