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. …

their growth. Economic theory suggests uncertainty can cause firms to delay investments until uncertainty is resolved. We … that, contrary to what they profess, macroeconomic and political risk is not inhibiting the investment behavior of …

The preferred risk habitat hypothesis, introduced here, is that individual investors select stocks with volatilities … commensurate with their risk aversion; more risk-averse individuals pick lower-volatility stocks. The investors' portfolio … stocks are sold they are replaced by stocks of similar volatilities, and the more risk averse customers indeed hold less …

In the 'Knightian' theory of entrepreneurship, entrepreneurs provide insurance to workers by paying fixed wages and … bear all the risk of production. This paper endogenizes entrepreneurial risk by allowing for optimal insurance contracts as … increases in risk borne. Thus, even under decreasing risk aversion, there are robust instances in which workers are wealthier …

foreign investors to the domestic market, thereby reducing its risk premium. …

We use portfolio theory to quantify the efficiency of state-level sectoral patterns of production in the United States …