This paper investigates the consequences of shutdowns during the Corona crisis on the risk of bankruptcy for firms in … Germany and United Kingdom. We use financial statements from the period 2014 to 2018 to predict how pervasive risk of … industries face high risk of bankruptcy. In Germany, about 99% of firms in shutdown industries and in the UK about 98% of firms …

This paper compares macroeconomic effects of Knightian uncertainty and risk using policy shocks for the case of Italy … measures for uncertainty and risk. The identification exploits the quasi-pessimistic behavior under ambiguity-aversion and the …-ask spread. In contrast, a pure change in risk shifts the risk-compensating discount factor which is well approximated by the …