considers the evidence on return predictability, risk aversion and market efficiency. The paper then focuses on the theoretical …

This paper argues that increases in perceived flood risk entail a negative and persistent shock to local economic … suffered damage, along with higher exit rates. The persistence of the effects is consistent with an upward revision of flood-risk … beliefs triggered by the hurricane. These findings suggest that businesses are adapting to the higher flood-risk environment …

Using a new composite climate-risk index, we show that population in high-risk counties has grown disproportionately … largely driven by increases in the (white) working-age population. In addition, we show that high-risk tracts have typically … grown more than low-risk tracts within the same county, suggesting the presence of highly localized amenities in high-risk …

-2017, we estimate the price effects of three flood risk signals: 1) the Biggert-Waters Flood Insurance Reform Act, which …

on the exact design of the law. Consistent with rational, risk-based pricing, the effect on returns seems to be linked to … how firms share systematic risk with their employees under the respective laws. Firms in states with WDLs prohibiting … employers from acting in bad faith have more intra-firm risk sharing and lower expected returns. Vaguer legislation that …

We study the interrelation between two types of risk sharing -- within the firm and on capital markets -- by analyzing … the effect of wrongful-discharge laws (WDLs) on stock returns. Consistent with rational, risk-based pricing, the effect on … returns is linked to how shareholders and workers share systematic risk via distinct channels of employment and wage …