Here, I present and discuss a "10-by-10-by-10" network-based approach to monitoring systemic financial risk. Under this … of cash flow, allowing regulators to assess risk magnitudes in terms of stresses to both economic values and also …

This paper studies Pareto-optimal risk-sharing arrangements in a private information economy with aggregate uncertainty …

in credit markets and the buildup of risk ex ante. During a systemic crisis, bailouts relax balance sheet constraints and … mitigate the severity of the recession. Ex ante, the anticipation of such bailouts leads to an increase in risk-taking, making …

CAPM can understate the risk of illiquid assets because these assets become riskier when investors are the most risk averse … times, assets' liquidity premia increase, investors become more risk averse, assets become more negatively correlated with …

Cuncertainty%u201D) and changes in risk aversion (%u201Crisk%u201D for short) in the determination of the term structure, equity … prices and risk premiums. Theoretically, we introduce persistent time-varying uncertainty about the fundamentals in an … and many salient asset market phenomena. While the variation in dividend yields and the equity risk premium is primarily …

We study the role of information in asset pricing models with long-run cash flow risk. When investors can distinguish … short- from long-run consumption risks (full information), the model generates a sizable equity risk premium only if the … propose a sparsity-based bounded rationality model of long-run risk that is both parsimonious and fully identified from …

, and near-frictionless refinancing opportunities---led to vastly increased systemic risk in the financial system …