requirements that take into account systemic risk by employing an externality pricing kernel. Second, we show that agents employ ex …

pricing kernel that quantifies the state-contingent magnitude of such externalities and provides welfaretheoretic foundations … because of pecuniary externalities that are triggered during financial amplification. The paper develops an externality …

pricing kernel that quantifies the state-contingent magnitude of such externalities and provides welfaretheoretic foundations … because of pecuniary externalities that are triggered during financial amplification. The paper develops an externality …