Motivated by policy statements of central bankers, we propose to regard the central banker as a risk manager who aims … of risk management that may be used to quantify the risks of failing to attain that objective. Risk measures inherently … assumption of quadratic symmetric preferences, while being congruent with a risk management model. We show how the parameters of …

situation poses to price stability. We propose to regard the central banker as a risk manager who aims to contain inflation … within pre-specified bounds. We develop formal tools of risk management that may be used to quantify and forecast the risks … of failing to attain that objective. We illustrate the use of these risk measures in practice. First, we show how to …

Recent empirical work suggests a strong connection between the incentives money managers are offered and their risk … riskiness of the portfolio. This represents a departure from the existing literature on agency theory in that moral hazard is … not only effort exertion but also risk taking behavior. The moral hazard problem with risk taking involves an incentive …

choice of performance measures and incentives depends on the agent’s knowledge, environmental risk, technological uncertainty …, and job complexity. The theory leads to several novel predictions, as well as new explanations for existing empirical …

Central and Eastern Europe. The theoretical section establishes a link between a risk-averse investor’s amount of information … faces less risk; therefore, the investor’s risk premium falls and the investor’s bid rises. This link generates four …

In this article, we develop and estimate an econometric panel data model to capture the common dynamics in dollar risk … premia in various forward foreign exchange rates. The common component in the dollar risk premia is highly significant and …-related common component. Our evidence also suggests that the three different foreign currencies’ dollar risk premia ‘respond’ to the …

This paper provides a critical survey of the methods employed to model the effects of risk in econometric models. Most … procedure used in the paper is to directly estimate the conditional variance (risk) by non-parametric estimators. Applications … are made to foreign exchange markets, interest rates and unemployment/inflation risk relations. …

to farmer investment is uninsured risk: when provided with insurance against the primary catastrophic risk they face … basis risk associated with the index insurance, and with imperfect trust that promised payouts will be delivered. …