banks to pursue safer investments in low-risk government securities …

aggregate risk. We propose a theory to explain these risk exposures. We study a financial accelerator model where entrepreneurs … inefficiently high risk exposure for entrepreneurs …

of idiosyncratic risk. We study this burden in the case of high-tech companies funded by venture capital. Over the past … attracting venture funding. Entrepreneurs with a coefficient of relative risk aversion of two and with less than $0.7 million ….4 million and the possibility of payoffs over $1 billion. We conclude that startups attract entrepreneurs with lower risk …

I characterize a dynamic economy under general distributions of households' risk tolerance, endowments, and beliefs … consumption-share increases; (b) the wealth-share of high risk-tolerant households increases; (c) richer households' wealth … risk sharing. Higher uncertainty increases stock prices, risk premiums, volatility, wealth inequality and the dispersion of …

The appeal of expected utility theory as a basis for a descriptive model of risky decision making has diminished is a …-range probability than is proposed by the expected utility model and risk-seeking behavior over "long-shot" odds is common …

Taxation and risk taking are examined in a general equilibrium model that incorporates uncertain government revenue in … riskless component of investment returns or to an ex ante wealth tax -- both of which absorb no private risk and yield certain … for behavior (private and total risk taking) and welfare are immediate. Moreover, these results are independent of the …

trade model with income-risk neutrality there tends to be an uncertainty- increasing motive for a TA. With income-risk … degree of risk aversion, an uncertainty- reducing motive for a TA is more likely to be present when the economy is more open …

We analyze the returns to education in a life-cycle framework that incorporates risk preferences, earnings volatility …

options in defined contribution retirement plans. We document large differences in realized TDF returns and risk profiles … reflects optimal risk-taking by fund families with low market share, especially those entering the market after 2006. Using … plan-level data, we find little evidence that 401(k) plan sponsors match the risk profile of the TDFs in their plans to the …