dynamic systems. Restrictions on the coefficients of an unrestricted VAR are proposed that are binding only in a limit as the … number of endogenous variables tends to infinity. It is shown that under such restrictions, an infinite-dimensional VAR (or … IVAR) can be arbitrarily well characterized by a large number of finite-dimensional models in the spirit of the global VAR …

exogenous risk and delegation. That is, we show that only if exogenous risk is sufficiently large, the risk-neutral principal … may prefer to delegate authority over decisions to the risk-averse agent. Intuitively, for incentive reasons, the … principal may optimally want to allow the agent to reduce his risk exposure. Nevertheless, even endogenous risk may be higher …

We analyze the role of risk-sharing institutions in transitions to modern economies. Transitions requires individual …-level risk-taking in pursuing productivity-enhancing activities including using and developing new knowledge. Individual …-level, idiosyncratic risk implies that distinct risk-sharing institutions - even those providing the same level of insurance - can lead to …

policy relevant outcomes and policy effects, that of the wage premia for fatal injury risk. Estimates of the overall hedonic …

of the employer and hence should be taken into account by the market in its assessments of risk. Using a hand collected … market risk indicators. This suggests that arguments that severance pay systems destroy corporate value may need to be …

volatility significantly increases the mortgage delinquency risk. This pattern even holds for borrowers with higher …; iii) the inability for a number of borrowers most at income risk to accumulate precautionary savings in order to meet …

This paper presents a new method to correct for measurement error in wage data and applies this method to address an … a cut in nominal wages is substantially overstated in data that is not corrected for measurement error. …

correcting for measurement error, wages appear to be very sticky. In the average quarter, the probability that an individual will …