The paper reports the result of an experimental game on asset integration and risk taking. We find evidence that … winnings in earlier rounds affect risk taking in subsequent rounds, but no evidence that real life wealth outside the … experiment affects risk taking. We find some evidence of imitation of the risk taking behavior of others that is distinct from …

between risk and uncertainty is implemented by applying the Gilboa-Schmeidler maxmin with multiple priors framework to lenders … and financial sectors and may lead to a total drying up of credit markets. (ii) Lower exante bailout uncertainty is … and the credit spreads. (iv) Bailout uncertainty is associated with higher returns’ variability in diversified portfolios …

We analyse bidding behaviour in auctions when risk-averse buyers bid for a good whose value is risky. We show that when … risk in the valuations increases, DARA bidders will reduce their bids by more than the appropriate increase in the risk … marginal utility of income increases with risk, so buyers are reluctant to bid so highly. We also show that precautionary …

Theory suggests that people facing higher uninsurable background risk buy more insurance against other risks that are … casualty insurance increases with earnings uncertainty. This finding is consistent with consumer preferences being …

This Paper analyses dynamic equilibrium risk sharing contracts between profit-maximizing intermediaries and a large … not only autarky, but also partial and full insurance can obtain, depending on the relative patience of agents and … financial intermediaries. Insurance can be provided because in an equilibrium contract an up-front payment effectively locks in …

Using a unique panel data set from a UK credit card company, we analyze the interest rate sensitivity of subprime … credit card borrowers. In addition to all individual transactions and loan terms, we also have access to details of a … interest rate sensitivities across borrower types within the subprime population. We find that subprime credit card borrowers …

-country general equilibrium model to show that hedging of real exchange rate movements and non-financial income risk, commonly …