This paper explores three possible transmission channels for transition risk shocks to the financial system in Norway … discusses ways to advance the still evolving field of transition risk stress testing …

building a dynamic stochastic general equilibrium model linked to global climate and a catastrophe risk model specifically for … drawing strong conclusions about the relevance of climate risk, as the model focused only on typhoons’ physical capital …

Traditional theory suggests that more profitable banks should have lower risk-taking incentives. Then why did many … to reconcile theory and evidence. In our setup, banks are endowed with a fixed core business. They take risk by levering … core business allows a bank to borrow more and take side risks on a larger scale, offsetting lower incentives to take risk …

sectors via the destruction of capital stocks and jumps in risk premia. These disruptions often entail negative feedback … explore this causal nexus and the effects of rare large disasters resulting in capital losses and rising risk premia. Our …

climate mitigation, and the direction of the risk is identified through manual labels. The documented risk premium indicates …

's probability of default and structural models of default risk to infer the capital losses they could experience in stress scenarios …

's probability of default and structural models of default risk to infer the capital losses they could experience in stress scenarios …