can undertake an active portfolio management strategy by investing in both risk-free and risky assets. Using a two …

-probability extreme events on environmental policy in a continuous-time real options model with “tail risk”. In a nutshell, our results … indicate the importance of tail risk and call for foresighted pre-emptive climate policies …

is negative in all countries except Canada (where it is positive) in the case of bond flows. Under the assumption of risk …

We define a class of risk-taking-neutral (RTN) background risks. These background risks have the property that they … will not alter decisions made with respect to another risk, for individuals with HARA utility. If we wish to compare a … decision made with and without some exogenous background risk, it is often easier to compare the decision made to one made with …

boom yields consistently positive excess returns. This excess return compensates for the risk of high negative returns in … countries on risk aversion, and low (high) risk aversion currencies depreciate (appreciate) in times of global turmoil …

risk neutral investors are sensitive with respect to capital tax risk and may react in a surprising manner to a newly …, high capital tax risk delays high-risk innovative investment projects. To reduce unintended consequences of uncertain tax …

risk and asset allocations. Recent work (Boyd, De Nicolò and Jalal, 2009, BDNJ henceforth) predicts that as competition in … less risk as loan rates decline is sufficiently strong. We test these predictions using two samples with radically … of competition. We also find that as competition intensifies, borrower risk decreases and the loan-to-asset ratio …