It is shown that the requirement to satisfy the no-arbitrage conditions specifies the Nelson–Siegel–Svensson model in … stochastic processes is produced under objective probability measure, i.e. taking into account risk market prices. It is shown …

There has been a revival of interest in the effect of risk on economic growth. We quantify both ex ante and ex post … effects of risk using a stochastic version of the Ramsey model. We develop a simulation-based econometric methodology which … remarkable long-running panel data set for rural households in Zimbabwe. We find that risk substantially reduces growth: in the …